Wholesale onion prices surge on low supplies; tomato prices still high

After tomato price rise, the average wholesale onion prices at Lasalgaon, the country’s largest wholesale onion market, crossed the Rs 3,800 per quintal mark for the first time this season, the highest in the last six months. Retail onion prices have gone up to Rs 50 per kg as against earlier prices of Rs 35-40 per kg in major cities like Delhi and Mumbai due to crop damages caused by heavy rainfall.

Late last week, as reported here, tomato prices had touched Rs 80 a kg in few retail markets in Kolokata and Delhi. Prices of tomatoes arestill high in major markets of tej country.

Lasalgaon Agriculture Produce Market Committee (APMC) has attributed the rise of onion prices to the drop in supplies due to the incessant rains that had hit several states in the last fortnight. Last week, average wholesale prices at Lasalgaon touched Rs 3,700 per quintal from Rs 3,800 per quintal. Last month, prices were in the range of Rs 1,450 per quintal same time.

The early Kharif crop which was to hit the market on Dusshera has been damaged due to heavy rains and the summer onion stock has been both exhausted and damaged due to rains. It is not possible for farmers to visit the fields which are still in water due to the rains and therefore the arrivals have dropped to some 5,400 per quintals on a daily basis from 15,000 quintals to 20,000 quintals earlier last month.

Prices should stabilise once the late Kharif crop begins to arrive in markets from mid-November. PK Gupta, director, National Horticultural Research and Development Foundation (NHRDF) quoted in a Financial Express report termed this as a temporary phenomenon. There have been heavy rains in onion growing belts of Karnataka, Andhra Pradesh, Gujarat and Rajasthan causing damage to the early Kharif crop, he said. However, the area under onion cultivation has gone up by nearly 25% this season and the late Kharif crop looks good in Andhra Pradesh, Karnataka and Telangana.

Leave a Reply

Your email address will not be published. Required fields are marked *