The wholesale price of onions in India's Nashik district has increased by 26% over the past four days at the Lasalgaon Agriculture Produce Market Committee (APMC), driven by delayed harvesting of the new kharif crop following intermittent rains since October 19.
According to market data, the average wholesale price rose from Rs 1,350 (US$16.20) per quintal on Tuesday to Rs 1,710 (US$20.50) per quintal on Friday. An APMC official said the recent rainfall has disrupted market arrivals. "The supply dropped from over 15,000 quintals to between 7,000 and 8,000 quintals, creating a supply-demand imbalance," the official said.
On Friday, the average wholesale price stood at Rs 1,710 (US$20.50) per quintal, compared with Rs 1,550 (US$18.60) on Thursday. The day's trading recorded minimum and maximum prices of Rs 700 (US$8.40) and Rs 2,600 (US$31.20) per quintal, respectively.
Despite the current price rise, returns remain below the estimated production cost of Rs 1,800 (US$21.60) per quintal. The new kharif onion crop usually enters the market from the second half of October, but this year's harvest has been delayed following heavy rainfall in September that damaged about 80% of the crop across the district. The remaining 20%, which was cultivated after August 15, is now expected to reach markets by the final week of November.
At present, supplies are mainly composed of summer onions harvested in March and April. These onions have a shelf life of six to seven months, allowing growers to store them in anticipation of improved market prices. Farmers typically release their stock depending on immediate cash flow needs. The stored summer onions continue to supply the market until the arrival of the new kharif crop resumes.
Source: Times of India
