The Lasalgaon Agriculture Produce Market Committee (APMC), recognized as one of India's primary onion wholesale markets, experienced an uptick in onion prices following the Union government's recent policy adjustments. Specifically, the government's decision to eliminate the minimum export price (MEP) and reduce the export duty by half has had a direct impact on market dynamics.
According to sources, the average price of onions at the Lasalgaon APMC surged by Rs 433 per quintal. This price adjustment occurred in the wake of the government's policy shift, which aims to modify the export landscape for onions.
Balasaheb Kshirsagar, the chairman of Lasalgaon APMC, commented on the policy change, noting, "The removal of MEP is certainly a good decision. The market has increased a bit. We think there should be no export ban. The imposition and removal of such things affects the market. Now MEP has been removed, but farmers' onion produce is running out." He also mentioned the lack of clarity regarding the extent of the export charge reduction, whether it was by 20 percent or 40 percent.
Market activity on Saturday saw the arrival of 425 vehicles, translating to 5,182 quintals of onions, with prices ranging between Rs 3,700 and Rs 4,951 per quintal, averaging at Rs 4,700 per quintal. This marked a significant increase from Friday's figures, where 302 vehicles brought in 3,736 quintals, and prices stood at an average of Rs 4,267 per quintal. The government's decision to halve the export duty on onions to 20 percent from the previous 40 percent, effective from September 14, reflects a strategic move ahead of the upcoming assembly elections in Maharashtra and Haryana.
Source: Business Standard