1. Commodity News

Onion price: Farmers, Traders Seek Lifting of Export Ban as Prices Decline in 5 Weeks

Pritam Kashyap
Pritam Kashyap
Onion price: Farmers, Traders Seek Lifting of Export Ban as Prices Decline in 5 Weeks

Wholesale onion rate has declined by 65 per cent within the last five weeks at the benchmark Lasalgaon wholesale market in Maharashtra, prompting farmers & traders demand that the export ban be lifted immediately to avoid a glut when Kharif harvest arrival rises.

The average wholesale rate of old onion from storage has decreased to Rs 18 per kilogram at the Lasalgaon market as on December 5 against Rs 54 per kg on November 2.

Officers from the Agricultural Produce Market Committees (APMCs) from Nashik district, along with elected representatives and other stakeholders have approached the central government, demanding immediate opening from onion exports.

The arrival of red onion from the Kharif harvest is gradually increasing within the market, while the arrival of old onions is robust. Fearing further decrease in rate, farmers are rushing their stocks to the markets.

Ajit Shah, president of Onion Exporters’ Association said, “As prices are decreasing every day and as the shelf life of the stored onion is now getting over, everyone who has old onion is selling it off. The arrival of new onion from states like Madhya Pradesh & Rajasthan has risen substantially, reaching close to two lakh bags of 40 kg each day.”

The association has told the govt. that exports got to be opened once the arrival of new onions rises to a comfortable level.

Jaydatta Holkar, director at Mumbai APMC, said, “If the decision to open up the exports is delayed further, then APMCs within the state will be forced to give a call for a bandh of markets.”

Pakistan which, too, had banned onion exports like India to rein in prices has opened exports since last week. Pakistani traders are selling onions at around $400 per tonne, as per traders told to media agencies. At the ruling market rate, Indian onion still prices above than those of Pakistan, they said.

Heavy rainfall towards the fag end of the monsoon season had damaged onion nurseries, resulting in 200 per cent jump in onion seed prices and raising the production cost.

“The rainfall from the returning monsoon has damaged the Kharif crop, which makes it necessary that the farmers get a good rate to recover their losses,” Holkar added.

Like this article?

Hey! I am Pritam Kashyap. Did you liked this article and have suggestions to improve this article? Mail me your suggestions and feedback.

Share your comments

Subscribe to our Newsletter. You choose the topics of your interest and we'll send you handpicked news and latest updates based on your choice.

Subscribe Newsletters