The wholesale cost of onion in Nashik, India, has experienced a major shift in price increasing by around 25% in a matter of a week. The price increase, ranging between Rs. 1,750 and 2,200 for 100 kilograms due to decreased supply, as well as the return of exports.

The reports indicate that there has been a drop in the number of onions arriving at Nashik’s fifteen Agricultural Produce Market Committees (APMCs) which have dropped between 7,500 and 10,000 tons per day. Market participants suggest that the prospect of possible cuts in the export duties following an election result Lok Sabha election results on the 4th of June has resulted in farmers not allowing their products to be sold.

In addition, the lifting of a ban on exports has permitted shipments to countries including Sri Lanka, Bangladesh, as well as Malaysia as well as Malaysia, with around 1500 containers being exported in the last fifteen days. This increase in exports is a little bit boosting demand which has affected average retail prices. Manoj Jain, a local onion trader and exporter stated that the decreased quantity of onions in the face of increasing demand has contributed to the rise in prices of Nashik’s market over the last week and including Pimpalgaon APMC reporting a notable average of around Rs 2200 per 100 kilogram.

“Rs 100 equals EUR1.10 (Rs 100 = EUR1.10)

Source: timesofindia.indiatimes.com