INVC NEWS
Nashik: In recent times, the market has witnessed a significant surge in the prices of garlic. Following suit, onions might be the next commodity to experience a hike in prices. At the Lasalgaon market in Nashik, the average wholesale prices of onions surged unexpectedly by 40% in recent days. The average price of onions here escalated from INR 1,280 per quintal to INR 1,800 per quintal. Approximately 10,000 quintals of onions were auctioned on Monday, with minimum wholesale prices recorded at INR 1,000 and maximum at INR 2,100 per quintal.
Export Demand Impacting Prices:
Officials from APMC indicate that onion exporters have initiated purchases for foreign markets, contributing to the price rise. Across retail markets in the country, the average retail price for onions stands at INR 32.26 per kilo. However, prices vary, ranging from INR 15 to INR 80 per kilo. In most urban and rural areas, prices hover around INR 25 to INR 30 per kilo. According to data from the Consumer Affairs Ministry, retail onion prices in Mizoram were recorded at INR 69.45 per kilo, Haryana at INR 40.25, Chandigarh at INR 37, Rajasthan at INR 36.72, Gujarat at INR 34.67, and Uttar Pradesh at INR 29.45 per kilo.
Government Intervention and Impact:
Last year, on December 7, the central government imposed a ban on onion exports until March 31, 2024, to stabilize domestic markets and wholesale prices. Consequently, wholesale onion prices plummeted by 67% in the past two and a half months. Prices dropped from INR 3,950 per quintal on December 6 to INR 1,280 per quintal on February 17. The announcement of lifting the export ban resulted in an immediate spike in onion prices. However, the official notification to revoke the export ban is yet to be issued by the central government. Bharati Pawar, Union Minister, mentioned that the decision was made during a meeting of the group of ministers led by Home Minister Amit Shah.
Impact on Lasalgaon Market:
This turn of events has significantly impacted the wholesale onion market in Lasalgaon, the largest in the country. The market has been witnessing fluctuations in average prices due to the export demands and government interventions. However, the future trajectory of onion prices remains uncertain until the formal announcement regarding the export ban is made.
Conclusion:
The sudden surge in onion prices following the garlic price hike indicates the interconnectedness of agricultural markets and the impact of government policies on commodity prices. As stakeholders continue to navigate these fluctuations, consumers must stay informed about market dynamics to make informed purchasing decisions.
In Summary:
- Onion prices surge by 40% in Nashik’s Lasalgaon market.
- Export demands contribute to the price hike.
- Government-imposed export ban and subsequent lift affect prices.
- Uncertainty looms over future price trends pending official announcements.
Stay updated with the latest developments to make informed decisions amidst market fluctuations.
