Wholesale onion prices drop 36% on arrivals
Onion prices in India fell 36% on Monday after supplies from the new arrivals season rose amid weak demand, prompting farmers to boycott auction at a few markets, government officials and dealers said.
January 24, 2011 / 17:57 IST
Onion prices in India fell 36% on Monday after supplies from the new arrivals season rose amid weak demand, prompting farmers to boycott auction at a few markets, government officials and dealers said.
Average onion prices at Lasalgaon, the country's largest wholesale market in Maharashtra, were at 1,400 rupees (USD 30.6) per 100 kg."There was a sharp rise in arrivals from late summer-sown crop. Arrival pressure will remain there in the market for next two weeks," said a senior official with Lasalgaon Agriculture Producing Marketing Committee."After a sharp fall in the morning session, farmers boycotted auction in the afternoon," the official said. Apart from Lasalgaon, Manmad--the other key market in the state--also witnessed boycotts.Maharashtra is the biggest onion producer in the country. In December, a multi-fold rise in prices of onion--a key ingredient of food in the country --had pushed up food inflation to one-year peak, triggering criticism against a government that is already battling corruption scandals.Onion supply in the country had nosedived after unseasonal rains during October-November damaged standing crop in the top producing states such as Maharashtra, Andhra Pradesh, Karnataka and Gujarat. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
