The average wholesale prices of onion at Lasalgaon AMPC is Rs 20-21 per kilogramme, down from Rs 39-40/kg just before exports were banned, showed market data compiled by the APMC.
The central government had first imposed a minimum export price (MEP) on onion, which was followed by the decision to impose a complete ban on exports on December 7. Onion prices started falling immediately after the export ban was announced.
Onion farmers, who have been agitating for lifting of the export ban, are hopeful that the government may reconsider its decision similar to the partial revision of the decision to ban diversion of sugarcane juice for ethanol, trade insiders said.
“Onion farmers are slowly bringing their crop to the markets as they are still hopeful that the central government may revoke the ban on onion exports,” said Ajit Shah, an onion exporter from Mumbai.
Traders said the arrival of kharif onion, which is also known as red onion, has increased substantially, putting pressure on prices. However, “good demand for onions across the country…may help keep the prices stable for a few days”, said Nandkumar Shirke, an onion trader from Ahmednagar in Maharashtra. At the Lasalgaon APMC, the average price of red onion on December 6 was Rs 39.50/kg, while the highest price was Rs 45/kg. These have fallen to Rs 21/kg and Rs 25/kg, respectively, as on Tuesday. Thus, the average price is down by 47% after the export ban while the highest price is down by 44%.
Onion arrival data from wholesale markets are showing higher arrival of kharif onions than expected by the government, market insiders said.
Lasalgaon market, for example, has seen the arrival of 3.66 lakh tonnes of red onions this month as of December 19, while the total arrival in the whole of December 2022 was 3.69 lakh tonnes.
“We are getting good quality red onions. Crop from only those fields, which were affected by the hailstorm has been damaged,” said an official of Lasalgaon APMC who requested not to be identified.
