Mumbai/ Navi Mumbai: Wholesale prices of onion in APMC Vashi dropped to Rs 8-12 per kg on Saturday owing to excess domestic stock after exports declined amid the war in West Asia. Retail rates however remain unchanged across Mumbai at Rs 20-24 per kg.Market observers said prices had dropped 50% compared to the corresponding period the previous year. Meanwhile the Central govt has instructed Nafed and Nccf to purchase two lakh tonnes of onion from farmers in April itself to prevent prices rising after September as they do annually On Saturday onion sold for Rs 30 per kg in Lokhandwala Complex Andheri, Rs 20-25 in Goregaon East and Rs 20-24 in Chembur.The owner of Veera Traders in Goregaon said, “Often when prices are reported to drop, it is lowest grade produce that is taken into account. Moreover the wholesale price is compounded by market fee, tax, transportation costs and loading charges. I myself have purchased different varieties for Rs 4-15 per kg in wholesale. Given the multiple costs I incur, I sell for Rs 16, 20 and 25 in retail. Within the next week the storage variety of onion will arrive which can last long. All traders will then build stocks of onion.” Simon Traders, Chembur, said wholesale rates had remained stable at Rs 15-20 since a few werks while retail prices were five rupees more.The West Asia conflict has disrupted shipping routes and reduced onion exports to Gulf countries by 45%, said market observers. Exporters reported a standstill in trade.“Lack of exports has resulted in a huge surplus of the rabi crop in the domestic market, forcing prices below cost of production,” said Ashok Valunj, APMC’s onion-potato market yard director.Farmers are struggling to cover production and transport costs, said Pandurang Gulve, a farmer from Barsi, Solapur who cultivates onion on 12 acre plot.Modal retail prices for onions dropped to around Rs 15-22 per kg, depending on quality. The govt is being requested to provide export incentives to mitigate the crisis for onion farmers, said trader Manohar Totlani.Valunj said the current ceasefire may bring relief as prices were expected to rise slightly with normalisation of shipping. Gulve said that the situation is critical as farmers are being offered very low rates. “Once export restarts, there will be a chance of recovery from the brink,” he said.
