The average wholesale onion prices at the country's largest wholesale onion market, Lasalgaon Agriculture Produce Market Committee (APMC), increased by 8.69% after the central government reduced the Minimum Export Price (MEP) from US$700 to US$400 per metric tonnes on December 10.
The Lasalgaon market, which opened after three days break on Monday, registered 8.69% rise in the average wholesale onion prices from the MEP impact. The average onion prices at Lasalgaon were recorded at Rs 1,250 a quintal on Monday against Rs 1,150 on Thursday.
According to sources from the APMC, "The Ministry of Commerce & Industry on December 10 reduced the MEP of onions by US $300 to US $400 following pressure from farmers, the APMCs and demand from the Maharashtra state government. The continuous decline in wholesale onion prices following rise in arrival of kharif onions had worried farmers as the prices had declined by 58% in just three weeks from Rs 2,600 per quintal on November 18 to Rs 1,100 on December 9. But the reduction in MEP has curtailed drop in prices."
The minimum and maximum prices were recorded at Rs 900 and Rs 1,556 a quintal, respectively and around 20,000 quintals of onions were auctioned at Lasalgaon on Monday.
Kharif plantation was postponed by two months due to delayed monsoon. After monsoon revival, kharif plantation began on a large scale. At present, onions arriving in the market are from Kalwan, Satana, Malegaon and Deola tehsils of the district. But the arrival from Chandvad, Niphad, Yeola and Sinnar tehsils, known as the major onion belt of the district, has just started. Hence, there was fear of more decline in prices due to possibility of onion glut.
