Chakan: Onion arrivals at the Mahatma Phule market in Chakan, Taluka Khed, were recorded at around 1,200 quintals on Wednesday (September 18), significantly lower than usual. However, prices are on the rise across the state.
The influx of onions from government entities like 'NAFED' and 'NCCF' into the markets has already led to price reductions in some areas, with onions being sold as low as ₹35 per kilogram in Delhi.
But despite these measures, domestic demand for Indian onions remains weak, and global competition from countries like Pakistan and Afghanistan—where onions are sold at much lower prices—has put pressure on Indian exports.
Kailas Limbhore, President of the Khed Agricultural Produce Market Committee, and Balasaheb Dhandre, Secretary, emphasized that the government’s decision to reduce export duties will likely increase onion exports and benefit farmers and traders, particularly during the upcoming harvest season.
The new crop is expected to enter markets between November and January, and many are hopeful that the removal of the MEP will result in better market prices for the fresh produce.
However, some experts believe the decision may have come too late. According to Sunil Pawar, former Marketing Director, this policy might end up benefiting traders more than farmers. As onion prices rise, consumers may face higher retail prices, which could further exacerbate inflationary pressures on essential commodities.
In major wholesale markets, onion prices have surged, with rates reaching between ₹40 and ₹50 per kilogram. Retail prices have also seen a significant increase across the country.
The recent intervention by 'NAFED' and 'NCCF' has managed to bring down prices in some markets temporarily, but experts caution that prices could climb again as demand picks up.
Prashant Gore Patil, an onion trader and exporter, welcomed the government’s decision, citing decreased demand for Indian onions globally as a key reason why the policy was needed.
"The government’s move will ensure that Indian onions remain competitive in the global market and will help prevent a price collapse in domestic markets," he said.
