Onion Prices Tumble 25% at Nashik's Lasalgaon APMC Following Supply Influx
In a significant market shift, the average wholesale onion prices at the Lasalgaon Agriculture Produce Market Committee (APMC) in Nashik district have plunged by nearly 25% over the past 8 to 10 days. This sharp decline comes as a direct result of a substantial surge in arrivals at the market, creating an oversupply situation that has driven prices downward.
Price Drop and Increased Arrivals
Market data reveals that prices, which were hovering around Rs 1,500 per quintal just a week ago, have now slipped to approximately Rs 1,100 per quintal. An APMC official attributed this drop to a marked increase in the arrival of fresh onion stocks. "The daily arrival has jumped significantly from around 15,000 quintals to between 25,000 and 30,000 quintals, which has naturally led to the price correction," the official stated.
Impact of Late Kharif Crop and Farmer Distress
The onions currently flooding the market are from the late kharif crop. These plantations faced a delay of over a month due to persistent and unseasonal rainfall last year. Unlike the more durable summer onions, late kharif onions have a critically short shelf life of less than a month and begin to deteriorate rapidly after harvest.
This perishability forces farmers to sell their produce immediately at prevailing market rates, contributing to the oversupply and subsequent price dip, as explained by local traders. On a recent Thursday, Lasalgaon APMC recorded an average wholesale price of Rs 1,100 per quintal, with prices varying widely from Rs 500 to Rs 1,356 per quintal. A total of 26,392 quintals were auctioned on that day alone.
Production Costs and Calls for Government Intervention
The situation has sparked concern among growers, with Bharad Dighole, President of the Maharashtra State Onion Growers Association, highlighting the financial strain on farmers. He pointed out that the cost of producing onions is approximately Rs 1,800 per quintal. "When market prices fall below this threshold, farmers incur substantial financial losses," Dighole emphasized.
With current prices remaining well below production costs, the association has made an urgent appeal to the state government. They are requesting a grant of Rs 500 per quintal for farmers who have been compelled to sell their produce at a loss over the past several months. This intervention is seen as crucial to mitigate the economic hardship faced by the agricultural community in the region.
