Nashik:
After unseasonal rainfall destroyed the onion crop this past fortnight, there has been a sharp increase in prices with a kilo costing about Rs 35. This is a 57 per cent hike from last week, when it was available for Rs 20 a kilo.
At Nashik's Lalsalgaon, the biggest onion market in Asia, traders blame the shortage on unseasonal rains that has destroyed some of the crop.
"There is a shortage of supply in the market," said Umalay Sonkar, a trader.
"This situation is due to the climate. I think by November end or December first week the situation will improve and prices will stabilize," said another trader.
Also, the Centre has slashed the minimum export price by $ 50 dollars to $ 375 per tonne for November against $425 per tonne to boost exports, anticipating a fresh crop by mid-November.
This has pushed up export demand, at a time, when supply in the domestic market is already low. Traders however assure once the weather stabilises, the price will also stabilise.
At Nashik's Lalsalgaon, the biggest onion market in Asia, traders blame the shortage on unseasonal rains that has destroyed some of the crop.
"There is a shortage of supply in the market," said Umalay Sonkar, a trader.
"This situation is due to the climate. I think by November end or December first week the situation will improve and prices will stabilize," said another trader.
Also, the Centre has slashed the minimum export price by $ 50 dollars to $ 375 per tonne for November against $425 per tonne to boost exports, anticipating a fresh crop by mid-November.
This has pushed up export demand, at a time, when supply in the domestic market is already low. Traders however assure once the weather stabilises, the price will also stabilise.
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