Onion prices surge as farmer protests across Maharashtra hit supply

The sharp increase in onion prices prompted the government to levy $850 a tonne of the minimum export price (MEP) on September 15, followed by the ban on its exports and levy of stock limits.

Sporadic protests by farmers across Nashik district in Maharashtra have hit the supply of onions to mandis or wholesale markets. As a result, prices have bounced back to the highest level in two weeks.

This has neutralised the government’s measures to curb onion prices.

Onion prices at the benchmark Lasalgaon mandi, Asia’s largest spot onion selling market, jumped 37 per cent or Rs 10 a kg to trade at Rs 37.29 a kg on Monday. Quotations were not available for Tuesday as the mandi is closed because of Dussehra.

Arrivals at Lasalgaon plunged to 137 tonnes on Monday — the