PUNE: Due to increased supply of red onion (kharif season) in the market, suddenly there was a drop in the wholesale rate of onion at Lasalgaon Agricutlural Produce Market Committee (APMC) on Monday. The price of onion in Lasalgaon reduced from Rs 8,700 per quintal on Saturday to Rs 6,800 per quintal on Monday. However, the wholesale prices of onions continue to remain high at Pune APMC and Mumbai APMC with potato and onion selling at Rs 130 per kg.

“This reduction in the rate of onion was due to the increase in the supply of red onion (kharif season) and also farmers are bringing pre-matured onions to the market due to the increased rates,” said the market experts.

“Overall supply of red onion has increased from all parts of the country including the southern states. The supply of onion at Lasalgaon APMC has increased by four times as compared to Saturday,” said Suvarna Jagtap, Chairperson, Lasalgaon, APMC.

“The total supply of onion on Monday was more than 9,000 quintals while on Saturday, it was around 2,000 quintals. Therefore, there was a dip of Rs 1,900 per quintal as the prices of onion have reduced from Rs 8,700 to Rs 6,800 per quintal,” added Jagtap.

She further said, “One of the important reasons was also the recent stock limit instructions given by the Central government which also played an important role in reducing the prices in the wholesale market.”

The government recently has imposed a stock limit of 25 MT for wholesaler and 5 MT for retailers.

“The overall supply of red onion has also increased and since rates are high, many farmers are bringing pre-matured onion that increases the total arrival in the market resulting in the reduction of prices,” said Narendra Wadhavane, Secretary, Lasalgaon APMC.

The rates continue to remain stable in Pune APMC as the wholesale rate of onion continues at Rs 130 per kg.

“The price of onion continues to remain stable as it has reduced by around Rs 10 overall. This is due to the increase in the supply of red onion (kharif) and also because farmers are bringing pre-matured onion in the market which almost constitutes 20 per cent of the total supply. If the supply remains stable, the prices will reduce,” said Vilas Bhujbal, President, Shri Chhatrapati Shivaji Market Yard Aadte Association, Pune.