Onion auctions, which had come to a halt at Lasalgaon — the country’s largest wholesale market for the vegetable — due to the ongoing transporters’ strike, after an agreement was reached between the traders and the market committee officials. Even though the strike has not been called off, traders agreed to take a risk and participate in the auctions. However, they hope that the agitation will be called off by the truckers in a couple of days. On Monday, some onion auctions took place in the sub-divisional market committees of Niphad, Umrana and Vanchur. Onion arrivals in these markets had touched 16,686 quintals and modal prices touched Rs 1,100 per quintal.Last week, arrivals at Lasalgaon were around 18,064 quintals with prices averaging at Rs 1,116 per quintal. Prices and arrivals were in the same range throughout last week.
Onion exporters to get 5% incentive under MEIS.
In a bid to boost onion export, the Centre has decided to give 5% benefit of Merchandise Exports from India Scheme (MEIS) to onion exporters. The scheme has come into effect from July 13 and will continue till January 12, 2019, says a notification issued by the Directorate General of Foreign Trade. Farmers, traders and the agriculture Produce Market Committee (APMC) at Lasalgaon had been demanding the incentive for onion exports. The Maharashtra State Agriculture Marketing Board had also sent a proposal to the Centre around two months ago, seeking 5% incentive for onion export to stop drop in onion prices. “The move will benefit onion exporters. The maximum onion export from the country is from Nashik district. Hence, it will benefit onion exporters in our district in a big way. It will also help stabilise onion prices, which will help the farmers.
Onion steady in Lasalgaon on lower arrivals, demand.
Prices of onion remained almost unchanged in the key market of Lasalgaon, Maharashtra, as the effect of subdued demand was offset by a fall in arrivals. In Lasalgaon, onion was sold at an average price of 1,130 rupees per 100 kg. Arrivals were pegged at 825 trolleys, each carrying 1.5-2.0 tn, down from 1,235 trolleys. Supply of the vegetable was lower due to disruptions caused by rains in the region. In Pimpalgaon, another key market in the state, onion was quoted largely unchanged at 1,100 rupees per 100 kg.
Lasalgaon onion prices on the rise amid low supply.
Onion prices in Maharashtra are moving up. Over the past month, the modal prices in the Lasalgaon market have risen 46 per cent owing to higher demand and supply constraints due to crop damage in other parts of the country. At the Lasalgaon market near Nashik, which serves as the bellwether for the bulb, prices rose from rs351-940 per quintal on June 5 to rs500-1,191 on June 20. On July 5, the price reigned at rs 500-1,475, with the modal price at rs 1,250. Crop in States such as Rajasthan and Madhya Pradesh had wilted due to excessive heat, resulting in additional demand from Maharashtra. This rally will continue for three months until the new crop arrives in the market. Over the past month, the retail price of onion has increased from rs 20 to rs32.