Asia’s largest onion market reaches 4-year high, onion prices

Efforts by the government to keep the price of onion under control this June are proving to be a failure as the onion started making the common people cry. The wholesale price of onion has reached Rs 50 per kg in Azadpur mandi in the capital Delhi, which is the highest level since 2015. At the same time, in Lasalgaon, Maharashtra’s largest onion market, onion has started selling at Rs 50 per kg. Traders said that onion stock in the country is very low, due to which the arrival in the mandis is decreasing.

Onion prices are rising due to less inward consumption. Rajendra Sharma, a businessman and president of the Onion Merchant Association, Azadpur Mandi, said that due to heavy rains in the states of South India, onion crop is getting worse and there is a delay in the preparation of new crop, onion prices are getting more support. . Sharma said that earlier in 2015, onion prices had gone above Rs 50 a kg. To keep the price of onion under control, the government last week set its minimum export price (MEP) at $ 850 per tonne so that the ban on exports does not reduce the supply of onions in the country’s markets.

The wholesale price of onion has reached Rs 50 per kg in Azadpur mandi in the capital Delhi, which is the highest level since 2015.

Asia's largest onion market reaches 4-year high, onion prices

According to the Directorate General of Foreign Trade (DGFT) notification dated 13 September, exports of onions at a price below $ 850 per ton (FOB) will not be allowed until further orders are arrived in this regard. An onion exporter from Nashik said that there is currently no scope for export at such a high price. At the same time, the price in the domestic market has also increased significantly, so there will be no margin in exports. Earlier in June, when the price of onion had increased, at the same time, the government had withdrawn 10% incentive on onion under the Merchandise Export from India Scheme i.e. MEIS, to put a brake on exports. Onions are being sold in the open market from the buffer stock lying with the government agency NAFED, but all these steps of the government are proving to be a failure in controlling the price of onion as the price of onion has increased twice in the last two months. . According to the price list available on the APMC website, onion price in Delhi was Rs 22.50-50 per kg on Friday, compared to Rs 20-40 per kg a day earlier. Thus, onion prices in Delhi increased by 25 percent on Friday.

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