Onion prices fall 13% in Nashik on export ban

The average wholesale prices of onions in various markets across Nashik, a major onion market in the country, have fallen by around Rs 130-220 a quintal (or 7.20 per cent to 12.57 per cent) since the Union government imposed a 15-day ban on onion exports on Monday (October 1, 2007).

Today, onion was sold at Rs 16-18 a kg in Nashik's retail market.

Following pressure from spiralling onion prices in the domestic market due to wide gap between demand and supply, the Union government has suspended onion exports for 15 days and raised the minimum export price by $50 a tonne to $495 with effect from October 1. 
 

PEELING OFF Wholesale prices at APMCs (Rs/quintal)
Date	Lasalgaon	Pimpalgaon	Yeola	Nashik
28-Sep-07	1,771	1,721	1,641	1,550
01-Oct-07	1,851	1,851	1,750	1,500
03-Oct-07	1,721	1,651	1,575	1.45
Oct 4,2007	Close	1,651	1,530	1,500

Onion growers in the district have strongly protested the Union government's decision. Around 3,000 farmers blocked the NH 3 highway at Pimpalgaon in protest against the decision. At Lasalgaon APMC, traders have decided to cancel auction on Thursday and Friday.

Today, the average wholesale prices in Pimpalgaon APMC were Rs 1,651 a quintal (Rs. 1,851 a quintal on Oct 1,2007), Rs 1,530 (Rs. 1,750) in Yeola APMC, Rs 1,500 (unchanged) in Nashik APMC.

The increase in onion prices in the last few days was due to arrival of low crops. Nashik is the major onion market in the country.

The district produces about 12 lakh tonnes of onions annually (including all three crops "" kharif, Rangada and Rabi). Maharashtra contributes around 30 per cent of the country's total onion production.