Nashik: The Centre's decision to release onions from its buffer stock to provide relief to urban consumers has reportedly led to a sharp fall in onion prices at the Lasalgaon market. With retail onion prices in domestic markets reaching ₹60 to ₹70 per kg, the government decided to send 840 tonnes of onions to Delhi from stocks procured under the Price Stabilisation Fund. The announcement reportedly put pressure on wholesale prices, with the average onion rate at Lasalgaon declining by around ₹450 per quintal.
On Monday, August 24, onions at the Lasalgaon Agricultural Produce Market Committee (APMC) fetched an average price of ₹4,251 per quintal. However, after reports emerged that onions from the buffer stock would soon enter the Delhi market through NAFED and NCCF, prices came under pressure, resulting in a decline of approximately ₹450 per quintal in the average rate.
Pressure on major onion markets expected
While the government's intervention is aimed at protecting urban consumers from rising prices, onion growers have expressed concern over its direct impact on farmers' earnings. Farmers have demanded that the government balance the interests of both consumers and producers while managing market demand and supply.
With buffer stock onions expected to be released not only in Delhi but also in other major cities, traders and farmers fear that prices in major onion markets, including Lasalgaon, could face further pressure in the coming days. Farmers are now watching closely to see whether the government's efforts to provide cheaper onions to consumers will once again come at the cost of onion producers.
Labour shortage alleged as spoiled onions delay dispatch
Meanwhile, questions have been raised over the government's handling of the planned onion dispatch. Against the scheduled 840 metric tonnes, only around 453 metric tonnes of onions were reportedly dispatched to Delhi on Wednesday.
Controversy has also emerged over the quality and grading of onions stored in government warehouses. Ganesh Nimbalkar, North Maharashtra chief of the Prahar Janshakti Party, alleged that a large quantity of lower-grade, small-sized onions, including those procured at low prices and brought in from Madhya Pradesh, had been stored in warehouses.
According to Nimbalkar, the storage life of some of these onions has expired, leading to spoilage and foul odour in certain warehouses. He further alleged that labourers were unwilling or unavailable to handle and load the spoiled onions, resulting in the failure to dispatch the planned quantity by rail.
