Nashik: Onion Market Under Pressure As Lasalgaon Rates Fall To ₹49 Per Kg
· Free Press Journal
Nashik: The onion market in Maharashtra has come under pressure as arrivals of new kharif onions from Karnataka and Andhra Pradesh have increased. At the Lasalgaon Agricultural Produce Market Committee (APMC), one of the state's major onion markets, wholesale prices of good-quality onions have declined from around ₹55 per kg last month to ₹49 per kg. However, despite the fall in wholesale prices, consumers in urban retail markets are still paying around ₹65 per kg.
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At Lasalgaon APMC, onion prices are currently ranging from ₹1,000 to ₹4,900 per quintal, with an average of ₹4,200 per quintal, while daily arrivals are around 6,000 quintals.
The new kharif onion crop from Karnataka and Andhra Pradesh began arriving in the markets after harvesting started towards the end of August, and supplies have now increased. With fresh onions available, traders and exporters are showing a preference for the new crop, affecting demand for Nashik onions and putting pressure on wholesale prices.
In Karnataka, onion prices are currently ranging between ₹35 and ₹51 per kg, depending on quality, which is also influencing prices in Nashik. Market observers also point to imports of onions from Egypt as another factor increasing supply and putting pressure on prices.
Nashik: NMC To Revive Closed Schools, Tap CSR Funds For InfrastructureLasalgaon APMC director Pravin Kadam said that although arrivals from Karnataka and Andhra Pradesh have increased, demand for Nashik onions from the hotel industry remains strong. Therefore, a sharp fall in Lasalgaon's onion prices is unlikely at present.
Nashik-based onion exporter Vikas Singh said overseas buyers are currently preferring the newly harvested onions from Karnataka and Andhra Pradesh, resulting in some impact on export demand for Nashik onions. If farmers anticipate a further decline in prices, they may release their stored onions into the market, which could increase arrivals and put additional pressure on wholesale rates. However, if supply and demand remain balanced, prices may continue around their current levels.
Despite wholesale prices falling to around ₹49 per kg at Lasalgaon, good-quality onions continue to be sold at up to ₹65 per kg in retail markets. Traders say around 20 to 30 per cent of onions purchased for retail sale may deteriorate, and sellers have to recover these losses through retail prices. This is why the decline in wholesale rates is not immediately reflected in consumer prices.
Nashik: Maharashtra’s First ‘Grain ATM’ To Come Up At Nashik RoadWith kharif onion arrivals increasing from various states, the market is expected to remain volatile until Diwali. Onion prices in the coming weeks will depend on arrivals, export demand and domestic consumption. A clearer trend is expected only after the arrival of the new summer onion crop increases.