Onion Prices Surge by 25% in Nashik as Supply Drops and Exports Resume
Nashik, 31st May 2024: The average wholesale price of onions in Nashik district has risen by approximately 25%, from Rs 1,750 per quintal last Friday to Rs 2,200 per quintal on Thursday. This increase is attributed to a decrease in supply and the resumption of exports.
Traders report that onion arrivals at all 15 Agricultural Produce Market Committees (APMCs) across Nashik district have dropped from around 100,000 quintals per day to 75,000 quintals in recent days. “Most farmers are withholding their produce, anticipating that the Centre may reduce export duty on onions and that prices will rise after the Lok Sabha election results on June 4,” one trader said, requesting anonymity.
Additionally, onion exports to Sri Lanka, Bangladesh, Malaysia, and other countries have resumed following the lifting of the export ban by the Centre. “About 1,500 containers of onions (30 tonnes each) have been exported from Nashik district in the last 15 days, increasing demand and causing a slight rise in average wholesale prices,” the trader added.
Manoj Jain, an onion trader and exporter, confirmed that reduced supply has led to increased demand. “This has resulted in a rise in average wholesale prices of onions across Nashik’s mandis over the past week,” he said.
At Pimpalgaon APMC, the average wholesale price of onions reached Rs 2,200 per quintal on Thursday. Minimum and maximum wholesale prices were recorded at Rs 1,400 and Rs 2,500 per quintal, respectively.
The Centre had imposed an export ban on onions in December last year to stabilize domestic prices. This decision adversely affected farmers, who protested against the move. With the ban now lifted, the market dynamics are shifting, leading to the current price surge.
As Nashik’s onion prices continue to climb, stakeholders are closely monitoring the situation, particularly in light of potential changes following the upcoming election results.
