Onion price Surge again in Pune, Reaches Rs 70 per kg

Pune Pulse

India bans onion exports till March 2024 ; Govt

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Pune : At the Gultekdi Agriculture Produce Market Committee (APMC), a total of 10,967 quintals of onions arrived from various parts of Maharashtra and Karnataka on Monday, surpassing the previous arrival of 10,000 quintals two days prior.

This increased supply, however, failed to ease the pricing pressure, with the retail market in Pune witnessing a sharp spike in onion prices, soaring to ₹60-₹70 per kg from ₹40-₹50 per kg just three days ago.

Traders highlighted the persistence of high rates, explaining that even with improved supply, the purchasing cost of around ₹5,000 per quintal resulted in elevated retail prices.

Despite the recent scrapping of the 40% export duty on onions and the enforcement of a minimum export price of $800 per tonne, this decision has faced opposition from farmers in the Nashik district, including the prominent Lasalgaon market, known as India’s largest onion market.

The farmers expressed concerns over their inability to recover production costs this financial year, with around 75% of onion growers in the state affected. The imposition of the minimum export value alongside the export duty was viewed as potentially detrimental to export prospects.

Furthermore, the scarcity of onions has intensified, as the stock from the Rabi season has been depleted, and the anticipation for new Kharif red onion arrivals remains subdued. This supply strain has led to a surge in onion prices in the wholesale market, reaching ₹5,000 per quintal, exacerbated by heightened domestic demand as Diwali festival in month of November.