Farmer offered 5p/kg for onion

Farmer offered 5p/kg for onion

Farmer offered 5p/kg for onion

Onion wholesale prices crashed in Nashik and in one auction, a farmer was offered as less as five paise a kg, triggering a sort of panic in the commodity market.

The situation has been building up since the last two months because of excess production.

On Tuesday, a farmer, Sudhakar Darade, from Saikheda in Niphad taluka claimed that during the auction he was offered five paise a kg.

However, he did not sell his stock and returned with his produce.

Excess production
In fact, due to back-to-back droughts, on August 21, 2015, the onion prices peaked at Rs 5,824 per quintal though the maximum trades took place at the Rs 5,400 levels which is Rs 54 per kg. 

Also because of drought, several farmers growing sugarcane shifted to onions. “Now it is a case of excess production,” said Deepak Chavan, a Pune-based agriculture commodity analyst, who belongs to a farming family.

This has come as a matter of concern for the National Agricultural  Cooperative Marketing Federation of India Ltd (NAFED).

As per the National Horticultural Research and Development Foundation (NHRDF), last year ( June 2014 to May 15) the country saw a production of 189 lakh tonnes, which increased to 203 lakh tones this crop year.

NHRDF report
According to data of NHRDF for Tuesday, 10,500 quintals arrived — and sold at minimum Rs 300 per quintal and maximum Rs 858 per quintal while the modal price was Rs 630 per quintal.

However, Sanjay Pingle, a member of Lasalgaon Agriculture Produce Marketing Committee (APMC), begged to differ.

“If the quality of onions is good, you get good prices....good quality onions are being sold at good prices.....not at five paise per kg or five rupees a quintal,” he said.
 

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