Onion prices swell 75 per cent in Kalamna market

Source: The Hitavada      Date: 25 Sep 2017 09:48:06


 

Business Bureau,

The average wholesale price of onions in the Agriculture Produce Market Committee (APMC), Kalamna marketyard has gone up as high as 75 per cent within one week period. Onion which earlier used to move in the range of Rs 10 to Rs 15 per kilogram, in a span of eight days, is being quoted between Rs 15 and Rs 20 per kilogram thus spoiling the mood of customers during the current festive season.


Sources in the market attributed the steep hike of onion prices to the torrential rains that lashed the onion growing places in the states of Karnataka and Andhra Pradesh. More than 30 per cent kitchen’s white staple which was supposed to reach the Kalamna market has been destroyed. “It is a major loss when the country’s per day demand during this period is anywhere between 25,000 tonne and 30,000 tonne. The demand during festive season surges,” said Jaiprakash Vasani, Past President of Kanda Batata Bazar Adatiya Welfare Association, Kalamna, while talking to The Hitavada on Sunday.


He said, majority of the onion crop in Karnataka and Andhra Pradesh has been destroyed at an infant stage itself and witnessed flood like situation. There has been renewed demand for the old stock in the market. The register of the onion traders operating in the wholesale markets of states like Uttar Pradesh, West Bengal, Uttar Pradesh and Bihar are filled with orders from various places in the country.


In Kalamna wholesale market, before 8 days, 20 to 25 vehicles used to unload onion. The figure has been contracted to 12 vehicles only. “Onions in Kalamna are coming from districts of Amravati, Akola, Ahmednagar Bhavnagar (Gujarat). We are receiving old stock i.e. summer variety of onion in the market and therefore the prices have surged,” he said. Looking at the present situation, Vasani said, “We are not expecting ample production of onion from Andhra Pradesh and Karnataka and therefore the prices are bound to remain on higher side.” By November, the prices may see another hike of 20 per cent, if normalcy did not restore in the markets.


He refuted that the Income-Tax raids that took place in the big markets did not have major impact on the current prices of the onion.
“The traders in Nashik decided to go on strike and keep the market close. However, they later decided to withdraw their agitation. If traders had gone on agitation, then the prices will definitely have gone up by more than 200 per cent. The prices in the market are not ruled by traders, consumers and Government. It vary according to situation i.e. demand and supply theory,” he said. In Nagpur, on Sunday, being a weekly market day at various locations, the retail prices were quoted between Rs 30 and Rs 35 per kiligram for good quality of onions.


It has been normal practice every year that the buffer stock of onions is created in the month of April or May. However, this year, the Government had not created buffer stock due to the bumper production of onion this season.


Even after exporting about 30 lakh tonne, the rates were within the reach of people. Large stockists in the country kept low level of stock this year which also resulted less supply in the market. This is also one of the reason which is contributing in rise in prices, sources said.