look news india
Mumbai: Due to low income and increasing demand, onion prices have increased by 35 to 40 percent in the last fortnight. The price of good onions in Lasalgaon market of Nashik is currently Rs 28 to Rs 30 per kg. Which was quoted at Rs 18 to 20 a fortnight ago. Traders are hoping that the new government will abolish the export duty.
A local trader said that prices have risen due to the imbalance between demand and supply. Currently, the supply in the market is coming from the stocks held by farmers and traders.
Prices have also increased due to increased demand for Indian onions from abroad after the government relaxed export rules. India's onions are in demand from many countries including Malaysia, Sri Lanka and Bangladesh, Iran.
On an average, 95 to 100 containers of onions are being exported from Nashik every day after the export ban was lifted last month. With the Lok Sabha elections over and a new government coming to power, traders and stockists are hoarding goods in the hope that the government will abolish the 40 per cent export duty on onions.
Market sources said that the supply of onion has also been affected due to heat and unseasonal rains. The demand is also expected to be high due to the festival of Eid on 17 June.