Onion Prices have reduced in Lasalgaon.

Nasik: The average wholesale onion prices at the country's largest wholesale market, Lasalgaon APMC, recorded a four-and-a-half-month low at Rs 1,700 a quintal on 27th Nov. On July 13 the previous low was recorded, at Rs 1,850 a quintal.

In the retail market, onion prices have reduced to Rs 25 per kg, providing relief to consumers to some extent. Retail prices are expected to decline to Rs 20 per kg in the next couple of weeks. With stock from the kharif crop coming in, the prices have declined as compared to the demand.

The average wholesale onion price at Lasalgaon APMC declined by 11 percent to Rs 1,700 a quintal on Friday as against Rs 1,900 a quintal on Tuesday. The minimum and maximum prices were recorded at Rs 1,400 and Rs 2,600 a quintal, respectively. Around 18,000 quintal onions were auctioned at Lasalgaon on 27th Nov.

"The arrival of fresh kharif crop has almost tripled from 5,000 quintals a day three weeks ago to 15,000 quintals a day today. This has led to a decline in the average wholesale onion prices by almost 34 per cent in the last 10 days to Rs 1,700 a quintal on Friday, against Rs 2,600 a quintal on November 17," said an official from Lasalgaon APMC.

After that he said, "The onions arriving in the market is of kharif crop and arrivals of late kharif crop is expected by mid-December. Plantation of kharif and late kharif delayed due to delayed monsoon this season. Hence, there had been a plantation of kharif onions at a same time following revival in monsoon. Hence, harvest of onions is also expected at a same time.

The official further explained that since the shelf life of kharif onions is less than a month and it gets sprouted, farmers can't store the commodity and have no option but to sell the produce at prevailing market rates. He said "Hence the arrival of onions is expected to increase more by mid-December, which may lead to a further decline in average wholesale onion prices."

The price trend is upward due to rise in supply. The average wholesale onion prices have reduced by almost 70 per cent in the past three months due to a rise in supply as compared to demand. The average wholesale onion prices at Lasalgaon had touched Rs 5,700 a quintal on August 22 due to scarcity of crops.

Source: http://timesofindia.indiatimes.com/