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LATEST NEWS UPDATES | Excess supply leads to fall in onion prices; farmers protest

Excess supply leads to fall in onion prices; farmers protest

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published Published on Feb 14, 2011   modified Modified on Feb 14, 2011
Onion prices continued to slide in the wholesale market at Gultekdi Market Yard on Monday due to excess supply of the commodity, prompting farmers to stage strong protest demanding higher procurement price by commission agents.

Agriculture Produce Market Committee (APMC)

The agitation started early in the morning and farmers disrupted supply of vegetables and other commodities to the wholesale market. They were called for a meeting by the commission agents and soon the supply was resumed.

Farmers also demanded resumption of onion export to help stabilise prices in the domestic market.

Compared to last few days, Onion supply, which was around 11,500 quintals per day at the wholesale market, increased to 21,114 quintals on Monday, with a price range of Rs 700 to Rs 1,100 per quintal. A couple of months the price was more than Rs 3,000 per quintal.


Though the wholesale prices have come down, it has not resulted in a similar fall in retail prices. Areas like Deccan Gymkhana, Model colony, Sahakarnagar, Mahatma Phule mandai and Kothrud reported onion prices at Rs 20 per kg.


A vendor at Model Colony told TOI: "The onion stock with us was bought three-four days ago, when the prices were on the higher side. The transporting charges have also gone up because of the increased prices of fuel. Hence, it raises our cost."

Interestingly, three-four days ago the onion prices were around Rs 400 to Rs 900 per quintal at the wholesale market.

Shivlal Bhosale, chairman, Shri Chhatrapati Shivaji market yard commission agents' association, said: "Unlike earlier, the current supply of onion is from fully grown crop, which has longer shelf life. But considering the high prices they got in December and January, farmers have increased the supply. All the talukas as well as nearby districts of Pune are supplying onion to Pune and Mumbai."

Commenting on the higher prices, Bhosale said, "Prices of any produce are based on the supply on a particular day. There is no other mechanism to fix the prices. Even if the commission agents buy onions at higher prices, the small vendors will not buy it from us at those rates. What should we do, we are just a link between farmers and vendors."

The Times of India, 15 February, 2011, http://timesofindia.indiatimes.com/city/pune/Excess-supply-leads-to-fall-in-onion-prices-farmers-protest/articleshow/7497810.cms


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