Moneycontrol
Oct 10, 2017 03:31 PM IST | Source: Moneycontrol.com

Onion prices surge to six-week high at Maharashtra's Lasalgaon market

The rise in prices is mainly due to floods in states like Gujarat, Madhya Pradesh, Karnataka and West Bengal.

Onion prices surge to six-week high at Maharashtra's Lasalgaon market

Moneycontrol News

Onion prices, which had fallen after the government's crackdown on wholesale traders, have seen a sharp surge and hit the highest mark in six weeks despite adequate supply.

At the Lasalgaon mandi in Maharashtra, onions are currently trading at Rs 21.50 a kg. The price of export quality onion jumped by Rs 2 a kg on Friday, a 58 percent rise from its low of Rs 13.60 a kg on September 19, reports the Business Standard.

The rise in prices is mainly due to floods in states like Gujarat, Madhya Pradesh, Karnataka and West Bengal. Late rainfall in September reportedly damaged onion kharif crop in Karnataka also.

Due to this, the onion demand is now concentrated on the Lasalgaon mandi.

On an average, onion prices rose Rs 200 per day. On October 3, the minimum price was Rs 700 a quintal and maximum was Rs 1,826 a quintal, according to data available on the Agmarknet.

The minimum price rose to Rs 1,200 while maximum went to Rs 2,731 a quintal.

According to a report in the HinduBusiness Line, the farmers in Karnataka did not sow onions to full capacity due to drought-like conditions. Only 50 percent crop was sown, of which nearly 15 percent got destroyed due to heavy rainfall.

Till Diwali, prices are likely to rise to Rs 2,800 to Rs 3,200 a quintal. Not only Maharashtra, but onion prices have risen in Bengaluru and Hubbali, too.

In September, six of the 16 wholesale mandis had been shut for onion trading after a sudden steep fall in prices to Rs 11/kg.

The average wholesale price of onion in Nasik, which was ruling at Rs 20/kg in early September fell to Rs 11/kg by September 15. Wholesale rates in other onion markets in Maharashtra too fell.

On a daily basis, onion arrival in mandis is about 20,000 tonnes. The onion being sold in Nasik mandis at present are of stored ones of last year's crop. The new kharif crop is yet to arrive.
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