Agri Business

Onion prices could rise with rains in Lasalgaon threatening kharif crop

Rahul Wadke Mumbai | Updated on September 24, 2019 Published on September 24, 2019

File photo   -  THE HINDU

Trader from Lasalgaon says situation is very unpredictable

Heavy rains, which lasted for 48 hours, have affected the production of onions in Maharashtra’s Lasalgaon region.

This region, situated in Maharashtra’s Nashik district, is a one of the major onion producing areas in the country. An estimated 23,000 hectares of Kharif and late Kharif crops have been planted in the Nashik district.

The area is also the largest wholesale market for onions in India.

The prices of onions are estimated to be Rs 80 per kilogram (kg), in metro cities like New Delhi and Metro, at the retail level.

Read: Onion prices on rise, touches ₹4,200 per quintal

Onion farmer Sagar Dhondge from Vinchur near Lasalgaon said that he has lost almost all his late Kharif crops, which were spread over 5 acres. “The rainwater has also entered the onion storage areas, which could trigger a fungal attack,” he said.

On Tuesday, the Skymetweather has reported that the meteorological division of Madhya Maharashtra has seen some intense showers during the last 24 hours. This trend is likely to continue. Pune, Nashik, and Malegaon would observe good rains until September 25 or 26.

An onion trader from Lasalgaon, Nitin Jain, said that the situation is very unpredictable and the traders can not gauge, which way the wholesale prices will move. But the prices are expected to stabilise after mid-October when the new crop, which was planted in the Kharif season (May and June) arrives in Nasikh’s markets and other onion producing districts of Maharashtra.

Supply disruptions in Kurnool, Andhara Pradesh and the decline in supply from Madhya Pradesh have also lead to the price rally in the wholesale and retail market in the country. Kurnool is known for its famous red onions, but its crop has been affected by floods. Therefore, there is a higher demand for Nashik’s red onions.

Chairman of Lasalgaon APMC, Jaydutt Holkar told BusinessLine that in the last 60 days the supply to Lasalgaon market has been stable at about 5 lakh quintals. In the comparable period of 2018, the same volume of supply arrived in the market. But with fresh rains, the situation could change.

Published on September 24, 2019
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