Traders attribute the price drop to the high moisture content in kharif onions, which makes them unsuitable for storage, resulting in increased supply in markets. Prices are expected to decline further unless the government removes the 20% export duty on onions to boost shipments."The increased supply of onions in wholesale markets across major producing states like Maharashtra, Madhya Pradesh and Gujarat has led to a fall in mandi prices. The withdrawal of export duty could boost demand and prices," Jaydutt Holkar, director, Agricultural Produce Market Committee (APMC), Lasalgaon, Nashik told FE.Trade sources estimate the cost of onion production at ₹1,700-₹1,800 per quintal, with farmers beginning to incur losses when mandi prices fall below this range.According to the department of consumer affairs, modal retail prices of onions have declined to ₹40 per kg from ₹60 per kg a month ago.Officials said that the retail prices are still on the higher side to initiate a cut on export duty. However, trade sources said that with robust arrivals of kharif crops across key producing states retail prices are expected to soften further over the next couple of weeks.

Mandi prices of onion fall 50% on fresh arrivals

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