As the new onion crop hits the markets in key producing states such as Maharashtra and Gujarat, the prices have slipped into a downward trend, to the grief of most growers.
High carry-over stocks from the last rabi season and slowdown of sales to consuming states like Tamil Nadu and Kerala, are seen weighing on the prices in producing states such as Karnataka and Maharashtra.
While the modal prices hovered at ₹1,200 (€14.95) per 100 kg in Lasalgaon, the largest onion market in the country on Thursday, the prices were even lower hovering between ₹530-750 (€6.61-9.35) in various markets of Karnataka such as Hubballi, Gadag and Ranebennur.
In Yeola, Maharashtra, the modal prices were the lowest on Thursday at ₹325 (€4.05), while in Neemuch and Khandwa of Madhya Pradesh, they stood at ₹450 and ₹550 per 100 kg respectively (€5.61 and €6.86).
According to thehindubusinessline.com¸ trade sources said that stock from the previous season is still stored with farmers, traders and stockists. This is creating a supply pressure on the market, looking to dispose the previous crop ahead of full-fledged arrival of new crop.