Nashik: Onion Prices Rise Again At Lasalgaon Despite Government Intervention

Nashik: Even as the Central Government continues to take various measures to control rising onion prices, wholesale onion prices at the Lasalgaon market have once again surged. After declining by ₹450 per quintal last week, onion prices have recovered, with the average price reaching ₹4,400 per quintal. The development indicates that government intervention has so far failed to bring the market under the expected level of stability.

To control onion prices, the Central Government has started releasing onions from its buffer stock into the market. Through NAFED and NCCF, onions are also being sold at subsidised rates in Delhi and other major cities. In Delhi, a campaign has been launched to sell buffer-stock onions to consumers at ₹35 per kg to provide relief from rising prices.

However, the renewed increase in prices at a major market such as Lasalgaon indicates that the demand-supply equation remains unstable. For 2026-27, the Centre had set a target of procuring 200,000 tonnes of rabi onions for the buffer stock. Of this, around 121,000 tonnes have reportedly been procured so far.

Meanwhile, market analysis suggests that the deterioration in the quality of stored onions and the delayed arrival of the new kharif crop are the major factors behind the price rise. Consequently, onion prices are expected to remain relatively firm until November despite government intervention.

The price rise at Lasalgaon is increasing inflationary pressure on consumers, while at the same time raising hopes among onion growers for better returns. However, if the government releases a large quantity of buffer-stock onions into the market, prices could come under pressure again in the coming weeks.

A sharp decline in onion arrivals at the Lasalgaon market has supported prices. Earlier in August, daily arrivals fell from around 15,000 quintals to 8,000 quintals. With arrivals nearly halving, onion prices have received a significant boost.

The delayed arrival of the new kharif onion crop from southern India has affected domestic supplies. At the same time, the deteriorating quality of stored onions has increased demand for good-quality produce available in the market. Traders and market analysts expect the price rally to continue until the arrival of fresh onions increases.

The rise in onion prices has brought some relief to growers who had been complaining for the past few months that market prices were inadequate compared with production costs.