India: Onion wholesale prices rise 32% at Lasalgaon APMC amid lower arrivals

• Arrivals fall to 8,000-9,000 quintals from 15,000 quintals 2-3 weeks ago
• Farmers occupied with kharif cultivation, limiting release of stored onions

Average wholesale onion prices at Lasalgaon APMC, a major onion trading hub in Maharashtra’s Nashik district, increased 32% to INR 3,700 per quintal on 18 August from INR 2,800 per quintal on 14 August. Prices opened at INR 3,360 per quintal after the weekend and rose by another INR 340 per quintal as arrivals remained restricted and demand stayed firm.

Lower arrivals support prices

Daily onion arrivals have declined to around 8,000-9,000 quintals from nearly 15,000 quintals two to three weeks ago. Rainfall and ongoing kharif cultivation have kept farmers occupied, limiting the release of stored onions.

Only farmers requiring immediate funds are currently selling their stocks, resulting in tighter availability in the wholesale market. This has provided support to prices despite stored summer onions continuing to meet market requirements.

Stored onions remain key supply source

The market is currently receiving summer onions harvested during March-April. These onions generally have a shelf life of around five to six months and are being released gradually depending on prevailing prices and farmers’ financial requirements.

Fresh onion supplies typically remain limited between May and mid-October. Therefore, the market is expected to remain dependent on stored summer onions until fresh kharif arrivals begin around mid-October.

On 18 August, onion prices ranged between INR 1,000 and INR 4,051 per quintal, with around 9,000 quintals auctioned.

Outlook

Onion prices are likely to remain supported in the near term if arrivals continue to stay restricted. Market availability is expected to improve once fresh kharif onions begin arriving from mid-October.