Onion prices decline on poor quality of arrival.

NASHIK: Onion prices declined on Wednesday as the quality of the arrivals was low, leading to lack of buying interest in markets in the district.

The prices ranged between Rs 1,500 to Rs 900 a quintal in the country's largest wholesale onion market in the country, Lasalgaon, with the average rates declining marginally by 4.21% to Rs 910 a quintal.

According to officials from the Lasalgaon agricultural produce market committee (APMC), the quality of onions has taken a beating due to unseasonal rains and hailstorms that hit the district in February and March. Out of total produce, only 20% of the arrival is of export quality, while the remaining onions are of poor quality. The good quality onions were getting good rates - in the range of Rs 800 - Rs 1,450 a quintal, while the poor quality ones were being sold at Rs 300 - Rs 700 a quintal. This is the reason the average wholesale prices have also declined, since the quantum of the poor quality crop is way more than the good quality onions.

Speaking to TOI, chairman of the Lasalgaon APMC Nanasaheb Patil said, "The recent hailstorm has badly affected the quality of onions in the district. Although the summer crop has a longer shelf life, due to the rains and hailstorms, the shelf life of the current crop has decreased and cannot be stored for long. Hence, the farmers have no option but to sell their produce at prevailing rates. So while the onions will continue to be available in abundance for the next two months, scarcity might be created post that. But the situation will also depend on how other onion growing states like Gujarat and Rajasthan contribute to the domestic market."

President of the Lasalgaon Merchants' Association and director of the Lasalgaon APMC, Nandakumar Daga ,said, "the traders too are at a risk while transporting poor-quality onions to other parts of the country as thye are prone to damage. So poor quality onions are being sold at lower rates - Rs 350 - Rs 700 a quintal. But the good quality onions are getting better prices of up to Rs 1,550 a quintal."

The onion arriving in the market is the summer crop harvested in April and May. The summer onion has a shelf life of around seven months. Hence, farmers prefer storing their produce with the hope of getting better prices later.

In Lasalgaon, the average wholesale onion prices was recorded at Rs 910 a quintal on Wednesday, against Rs 950 a quintal on Tuesday. The minimum and maximum prices were recorded at Rs 200 and Rs 1,450 a quintal, respectively and around 14,000 quintals were auctioned.

The average wholesale onion prices at Pimpalgaon were recorded at Rs 1,051 a quintal, against Rs 1,100 a quintal on Tuesday.

In Yeola, the average wholesale onion prices was recorded at Rs 700 a quintal, the same as on Tuesday. The minimum and maximum prices were recorded at Rs 200 and Rs 1,540 a quintal, respectively and around 4,000 quintals were auctioned.

Source : timesofindia.indiatimes.com