Onion prices rise as traders keep away from auctions

Onion prices increased 20 per cent today in the city retail markets due to short supply, following a traders’ boycott of the Agricultural Produce Market Committee’s (APMC) onion auctions.

Good quality onions were sold at Rs 50 and the poor quality at Rs 25-30 a kg in the retail markets, against Rs 40 and Rs 20 a kg, respectively, on January 8.

The new crop has just started trickling in at the district APMCs and regular arrivals are expected in the next couple of weeks. The sale of onion – that recorded 33,620 quintals during the last week of December at Asia’s biggest onion market in Lasalgaon – has increased by almost 36.31 per cent to 45,795 quintals during January first week.

All APMC markets in the district were closed today as traders kept away from the auctions. “Nashik District Onion Traders’ Association has decided to boycott onion auction in district APMCs for two days to protest the state and central governments’ policies. They have not taken to well the decision to force traders to sell onion at lower rates,” an official said.

The NDOTA said there was no connection with the ban on onion auction with the recent Income Tax raids on onion traders.

However, onion trading in Saurashtra region suffered a set back for the last two days with traders protesting the IT department raids following reports of illegal hoarding. Though farmers travelled the distance to sell their produce, brokers and traders stayed away in Rajkot, Gondal, Bhavnagar, Mahuva and other parts of Saurashtra.

Trade resumed in Gondal, Mahuva and Bhavnagar districts. According to onion traders from Rajkot, trading will start from Tuesday and the prices are also expected to come down with ample stock in APMC godowns.

PTI adds: Onion traders in the district called off their two-day strike after assurances that contracting parties would not be forced to sell the vegetable at below cost price that had dried up offtake from the mandis here. The Maharashtra State Co-operative Marketing Federation assured that their problems will be conveyed to the state government.

(With inputs from Vimukt Dave in Rajkot)