Nashik: Onion Prices Rise ₹700 Per Quintal In A Week As Fresh Arrivals Are Delayed
· Free Press Journal
Nashik: Onion prices have regained momentum after a period of fluctuations, with wholesale rates rising by around ₹700 per quintal in just over a week amid declining stocks of old Rabi onions and a delay in the arrival of the new Kharif crop. At the Lasalgaon Agricultural Produce Market Committee (APMC) in Nashik district, the maximum price of summer onions increased from ₹3,601 per quintal on Oct 10 to ₹4,525 on Oct 19. The average price also rose from ₹3,351 to ₹4,050 per quintal during the same period. The price surge has coincided with a decline in daily arrivals, tightening supplies in one of India's leading onion markets.
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Onion Arrivals at Lasalgaon Decline by 15%
Lasalgaon, a major onion trading hub, has seen a fresh rally in prices over the past week. On Monday, the maximum price reached ₹4,525 per quintal, registering an increase of approximately ₹2 per kilogram compared with Saturday. According to Vikram Singh of the Horticulture Produce Exporters Association (HPEA), daily onion arrivals in the market have declined by nearly 15%
Stocks of onions harvested during the previous Rabi season are nearing depletion, while the new Kharif crop has yet to arrive in the expected quantities. This has widened the gap between supply and demand, putting upward pressure on wholesale prices. With old stocks dwindling and fresh supplies delayed, traders expect prices to remain firm in the near term.
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Rainfall conditions this season have affected onion cultivation. Rainfall was around 40% below the long-term average during the relevant period, affecting sowing and transplanting activities. As a result, the arrival of the new Kharif crop has been delayed, disrupting the usual supply cycle.
India produces onions mainly during the Rabi and Kharif seasons. Rabi onions, planted during November and December and harvested in March and April, account for nearly two-thirds of the country's total onion production. These onions are stored and used to meet market demand until September and October, when fresh Kharif arrivals generally begin supporting supplies.
This year, however, the depletion of stored Rabi onions has coincided with a delay in fresh Kharif arrivals. The resulting supply constraints have contributed significantly to the latest price rise.
Fresh Arrivals Expected to Increase After Diwali
In Nashik district, fresh Kharif onion arrivals normally begin around Oct 15. This year, the process has been delayed, and a substantial increase in arrivals is now expected after Diwali, possibly around Nov 10.
Fresh onion arrivals from Rajasthan's Alwar region could begin around Nov 1, while supplies from Madhya Pradesh and Gujarat are also expected to improve towards the end of October. The increased availability of onions from these regions could gradually ease the pressure on prices.
However, the extent of the relief will depend on the volume and quality of the incoming crop, as well as the pace at which supplies reach major wholesale markets.
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Demand for onions generally increases during the festive period surrounding Dussehra and Diwali. Consequently, prices may not decline immediately even when fresh arrivals begin to improve. Some traders believe prices could rise by another ₹8 to ₹10 per kilogram before supplies from the new crop increase substantially.
Market experts, however, expect prices to soften gradually once arrivals gather momentum. Until then, festive demand and limited availability could keep onion prices at elevated levels.
A further increase in cultivation during the late Kharif season could also boost supplies from January onwards. Traders have indicated that the resulting increase in availability could lead to a significant correction in prices during that period.
Overall, declining stocks of old onions and delayed arrivals of the new Kharif crop have driven the current price rally. Although supplies are expected to improve after Diwali, the future direction of onion prices will depend on rainfall patterns, crop production, the pace of fresh arrivals and prevailing market demand.