Nashik: The average wholesale price of onions at the Lasalgaon Agricultural Produce Market Committee (APMC) saw a significant increase of approximately 10% on Monday, driven by the entry of the central procurement agency, the National Agricultural Cooperative Marketing Federation of India Ltd (Nafed).
Price Surge Details
The average price rose from Rs1,500 per quintal recorded on Friday to Rs1,650 per quintal on Monday. Despite minimal procurement by Nafed on its first day, the agency's presence alone pushed up prices by around Rs150 per quintal, reflecting the market's sensitivity to government intervention.
Nafed procured around 20 quintals of onions at a rate of Rs1,580 per quintal through auction. However, traders and APMC officials noted that Nafed's entry created a competitive environment, encouraging higher bids in the open market.
Market Dynamics
The prices of good-quality onions continued to rule above Nafed's procurement rate. On Monday, good quality produce fetched between Rs1,650 and Rs2,090 per quintal, making it less attractive for farmers to sell to Nafed at the fixed rate. Officials confirmed that three Nafed-linked agencies have been granted licences to procure directly at Lasalgaon APMC through auctions. However, procurement remained limited as farmers preferred better returns offered by traders. In one instance, a farmer sold to Nafed only after a trader quoted Rs1,450 per quintal, highlighting the price disparity.
Need for Strategic Revision
APMC sources indicated that Nafed may need to revise its procurement strategy to achieve its goals. “Unless Nafed aligns its procurement parameters with prevailing market prices, it will find it difficult to procure in large volumes. A price band closer to Rs1,500-Rs2,000 per quintal may help,” an APMC official said.
Official Statistics
The average wholesale price on Monday was officially recorded at Rs1,651 per quintal, with minimum and maximum prices at Rs800 and Rs2,090 per quintal, respectively. Around 19,000 quintals of onions arrived for auction during the day, indicating robust supply.
