Avg wholesale onion prices drop 25% over 8-10 days in Lasalgaon APMC after supply surge

Nashik: The average wholesale onion prices at the Lasalgaon Agriculture Produce Market Committee (APMC) in Nashik district have fallen by nearly 25% over the past 8-10 days, following a surge in arrivals at the market.Prices that were around Rs 1,500 per quintal a week ago have now slipped to about Rs 1,100 per quintal. "The arrival of fresh onion stocks has increased significantly, from around 15,000 quintals per day to between 25,000 and 30,000 quintals, resulting in the price drop," an APMC official said.
The onions currently reaching the market are from the late kharif crop. These plantations were delayed by more than a month due to persistent rainfall last year. Unlike summer onions, late kharif onions have a shelf life of less than a month and begin to rot soon after. Farmers, therefore, are compelled to sell them at prevailing market prices, leading to oversupply and a dip in wholesale prices, traders said.On Thursday, Lasalgaon APMC recorded an average wholesale price of Rs 1,100 per quintal, with prices ranging between Rs 500 and Rs 1,356 per quintal. A total of 26,392 quintals were auctioned during the day.Bharad Dighole, President of the Maharashtra State Onion Growers Association, said the cost of producing onions was around Rs 1,800 per quintal. "Farmers suffer financial losses when prices fall below this level," he said.With current prices well under production costs, the association has urged state govt to offer a grant of Rs 500 per quintal to farmers who have had to sell their produce at a loss over the past few months.