Onion prices to soar further this Diwali

Onion prices to soar further this Diwali

Onion prices continue to soar in the country's largest wholesale market at Lasalgaon in Nashik, with wholesale traders saying that the prices could rise further during Diwali. 

Wholesale onion traders of the Lasalgaon Agriculture Produce Market Committee (APMC) said the widening gap between the demand and supply had pushed up the prices. The average wholesale onion prices have increased by 80 per cent in the past 10 days at the APMC, with Monday, when the market reopened after the weekend, recording an increase of 21.33 per cent. The average price of onions was Rs 2,451 per quintal on Monday as against Rs 2,020 on Friday. 

APMC sources said the rise in wholesale onion prices was expected to get reflected in retail prices in the next few days. The retail price has already increased to over Rs 30 per kg in Nashik and may go up to Rs 35 per kg in the next few days. Elsewhere in the country, the retail price could be about Rs 50 per kg. 

Speaking to TOI, Lasalgaon APMC chairman Jaydatta Holkar said, "The demand for onions from the southern parts of the country has increased significantly following scarcity . This has led to a rise in the wholesale onion prices in Nashik. Moreover, Lasalgaon and other APMCs in the district that deal with auctioning of onions will remain closed for a week during Diwali. Hence, wholesale traders have increased their onion procurement," Holkar added. 

Around 8,000 quintals were auctioned at Lasalgaon on Monday. On Friday, about 21,000 quintals of onion was auctioned at Lasalgaon APMC. "The onions arriving in the markets is the crop harvested in March and April. The summer crop has a shelf-life of up to five-six months and farmers prefer storing onions with a hope of getting better prices. Although farmers still have adequate stock, 20 per cent of their stock has been damaged or spoiled due to rains," an APMC source told TOI.

By BOA Bureau