The country’s largest wholesale market for onion, Lasalgaon in Nashik, has witnessed prices of the edible bulb jumping up 40% to Rs 18.50 per kg in the last two weeks. This rise was despite the imposition of minimum export price (MEP) on the vegetable to check its domestic rates from going up. The impact of this rise can be felt at Delhi’s Azadpur market where they are ruling at Rs 15-25 per kg depending upon the quality.
As per data compiled by National Horticultural Research and Development Foundation (NHRDF), the average rate of onions at Lasalgaon has soared to Rs 18.50 per kg from Rs 13.25 per kg on June 18. NHRDF added that the prices have increased due to speculation amid anticipation of weak monsoon affecting Kharif (summer-sown) crops.
In order to curb overseas sales and control rising retail prices, the Centre had imposed a MEP of $300 per tonne on onion on June 17. The prices have jumped by 90% in last one month, to Rs 18.50 per kg as against Rs 9.75 per kg on May 30.
Onion is predominantly a rabi crop grown throughout India. During the kharif season it is grown mainly in states of Maharashtra, Karnataka, Gujarat and Andhra Pradesh. Onion production is estimated to have risen to 192 lakh tonne (LT) during 2013-14 crop year (July-June), from 168 LT in 2012-13. Exports meanwhile fell to 13.58 LT last fiscal from 18.22 LT in 2012-13.