Average wholesale onion prices at the Lasalgaon Agriculture Produce Market Committee in Nashik district have declined by nearly 25 per cent over the past 8–10 days, following a sharp increase in daily arrivals.
Prices that averaged around INR 1,500 per quintal, approximately US$18.10 per 100 kg, about a week ago have eased to around INR 1,100 per quintal, or about US$13.25 per 100 kg. An APMC official said daily arrivals have risen from roughly 15,000 quintals to between 25,000 and 30,000 quintals, contributing to the downward price movement.
The onions currently reaching the market are from the late kharif crop. Planting of this crop was delayed by more than a month last year due to persistent rainfall. Unlike summer onions, late kharif onions typically have a shelf life of less than one month and begin to deteriorate quickly. As a result, growers are required to sell volumes soon after harvest, increasing market supply and putting pressure on prices, traders said.
On Thursday, the Lasalgaon APMC recorded an average wholesale price of INR 1,100 per quintal, with prices ranging from INR 500 to INR 1,356 per quintal, equivalent to about US$6.00 to US$16.35 per 100 kg. Total auction volumes for the day reached 26,392 quintals.
Bharad Dighole, president of the Maharashtra State Onion Growers Association, said production costs are estimated at around INR 1,800 per quintal, or about US$21.70 per 100 kg.
"Farmers suffer financial losses when prices fall below this level," he said.
With current market prices remaining well below estimated production costs, the association has called on the state government to provide a support grant of INR 500 per quintal, approximately US$6.00 per 100 kg, for farmers who have sold onions at a loss over recent months.
Source: The Times of India
