Why Onion prices may cross Rs 50-mark amid festivities
Ahead of Diwali, onion prices may cross Rs 50-mark in Maharashtra. The heat of this could be felt in other states as Maharashtra is the largest onion supplier in the country.
Ahead of Diwali, onion prices may cross Rs 50-mark in Maharashtra. The heat of this could be felt in other states as Maharashtra is the largest onion supplier in the country. Nashik alone produces 30-40% share of India's total onion production. The state also hosts Asia's largest onion market at Lasalgaon in Nashik. DNA today reported that prices of onion will rise amid the ongoing festivities because there has been a drastic decrease in supply, leading to a 100 per cent rise in the prices within a week. Onions were sold at Rs 10/kg in the wholesale market last week. The price has now jumped to Rs 20 per kg.
"...the way the market is going up, it will surely cross the Rs 50 per kg-limit soon," Ashok Walunje, onion trader and ex-director at the Agriculture Produce Market Committee (APMC), Vashi told DNA.
Against the average supply of 125-150 trucks daily, Walunje said, they are getting just 50 trucks of onions. He said onion is coming mostly from Nashik and Pune. However, the supply has been decreasing with every passing day.
Reasons behind depleting supply
Walunje blamed "scanty rainfall" as the main reason behind falling supply and subsequent price rise. He said the new supply has not started and they are getting only the stocked onions. Nanasaheb Patil, chairman of Asia's largest onion market at Lasalgaon in Nashik, confirmed that onion supply is drying. He said there was the supply of 15,000-16,000 quintal per day last week but this has come down to 10,000 quintal. He blamed drought as the main reason behind the depleting onion supply.
Patil said that the fresh supply will start a little late and the production has also gone down.
Patil said Nashik district has suffered a severe drought. "People are not getting water to drink. Keeping the animals will be major issue in drought now. Therefore, each crops production has gone down drastically. The onion will not be exceptions. If there is no water, how the farmer will produce the onion crop," Patil said.