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Onion supply in Asia's largest market down by 80% this year

According to the Lasalgaon Agriculture Product Market Committee (APMC), in August 2014, it had received almost 2.50 lakh tons of onion, while this August it has got a mere 50,000 tons.

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NCP workers protest against the onion price hike near Mantralaya on Monday
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This is why your vegetable budget has taken a hit — the onion supply in Asia's largest onion market Lasalgaon has been down by almost 80% this month, leading to the constant increase in prices of the bulb.

According to the Lasalgaon Agriculture Product Market Committee (APMC), in August 2014, it had received almost 2.50 lakh tons of onion, while this August it has got a mere 50,000 tons. "We are receiving only 2,000 quintals of onion daily. Last year, due to abundant supply, onion prices remained stable and did not go beyond Rs15 per kg. Last Saturday, onion was sold at Rs63 a kg. There is an almost 300% jump in price this year. The situation has gone out of hand... The government has woken up late and floated a tender only now to import 10,000 tons of onion," said Nanasaheb Patil, chairman at Lasalgaon APMC.

"Demand has remained the same but there is no supply; hence, prices are soaring. The government should have taken this issue seriously and pursued the earlier tender. That tender was called off because of a lukewarm response. Now, it has re-floated it... This entire procedure will take at least a month and, in the meanwhile, onion rates will climb new heights."

Experts, farmers and traders claimed that the dramatic increase in price is a result of hailstorms and unseasonal rain in February and March, which had damaged a majority of summer onion. "Besides, this year, there is a drought-like situation in the onion-growing belt. So, there are less chances of any respite in September and November. Some private traders had imported a few tons, but that small quantity will not salvage the situation," said a trader, requesting anonymity, adding that the government is unnecessarily blaming traders for hoarding.

He also said that small-time traders and consumers are stocking the bulb only because of the fear of prices rising beyond their capacity.

Onion trader and farmer from Dhule APMC Tukaram Patil said, "Panic in the market is also creating shortage. People should not go overboard. If prices are high, they can cut down on their consumption. It is not an irreplaceable ingredient... Consumers spend Rs500-1,000 on fast food in one sitting without batting an eyelid, but when it comes to paying farmers more, they cry foul and demand a decrease in rates. A normal family can't eat more than 5-7kg onion, so there is no need to create havoc."

However, Navi Mumbai resident Rekha Kamble said, "It is easy to say that food can be made without onion, but it has a unique taste, which some people can't do without. In most non-vegetarian items, onion and garlic are must."

"Currently, we are buying it at Rs65-80 per kg. With prices going up, we have decided to buy 15kg this month. Looking at the situation, it's highly possible that prices will go beyond Rs100 per kg," she added.

In an attempt to bring down people's worries, agriculture minister Eknath Khadse told dna that the Centre has ordered 10,000 metric tons of onion. "If there is a lot of panic, we may sell these through the public distribution system across Maharashtra. We are hopeful that the market will stabilise once the new crop starts coming in. We have also started taking action against hoarders," he added.

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