Nashik: The average wholesale prices of onion dropped by 24% in five days to Rs 3,650 per quintal at the countrys largest wholesale onion market at Lasalgaon on Friday after the Union government imposed a minimum export price (MEP) of USD 800 per tonne on onion exports on October 28 evening.The average wholesale prices of onion at Lasalgaon had shot up from Rs 2,050 per quintal on October 3 to Rs 4,800 per quintal on October 28 due to drop in supply in both domestic and export markets.The onion export from Nashik has slowed down after the Centre introduced the MEP for onions. It has become difficult to export onions at such a high price. This has also impacted the average wholesale prices of onion, said traders.Moreover, fresh kharif crops have started arriving from Rajasthan, but at a very low quantity. This has also reduced the demand for onion from Nashik to some extent. This is also one of the reasons why the average wholesale prices of onion have dropped at Lasalgaon, said traders.Presently, onions arriving at the wholesale markets were harvested in March and April. The produce is arranged from the storage of farmers. But the stock of onions with farmers is likely to be exhausted in the next few days. Hence, average wholesale onion prices are expected to increase further by Rs 500 per quintal soon, said traders.The minimum and maximum wholesale prices of onion at Lasalgaon were recorded at Rs 1,400 and Rs 4,246 per quintal, respectively. Around 10,000 quintals of onions were auctioned at Lasalgaon on Friday.Meanwhile, the APMCs will remain closed for 10 days from November 9 due to Diwali. More stock of fresh kharif onions are expected to arrive but at a low quantity after the market reopens. Regular arrivals are expected to start by the first week of December.We also published the following articles recentlyGovt imposes minimum export price of $800 per tonne on onion till Dec 31The Indian government has imposed a minimum export price (MEP) of $800 per tonne on onion exports until December 31 to increase availability in the domestic market and control prices. Onion prices have recently risen to Rs 65-80 per kilogram in Delhi due to lower supply. Mother Dairy and e-commerce platforms like Bigbasket and Otipy are selling onions between Rs 67-70 per kilogram, while local vendors are selling them at Rs 80 per kilogram.Onion price drops at mandis after govt fixes MEPThe imposition of a minimum export price (MEP) of $800 per tonne has led to a decline in wholesale mandi prices of onions in Delhis Azadpur market. Prices fell from Rs 55-60 per kg to Rs 45-50 per kg. However, it will take time for the impact to reach the retail market. The consumer affairs ministry expects prices to fall further as kharif crops arrive from Rajasthan, MP, and Maharashtra. In Maharashtra, prices have already seen a decline of 5% to 9%.Amid onion price rise, government sets export base price at $800 per tonneTo control the rising onion prices, the Indian government has imposed a minimum export price of $800 per tonne until the end of December. This move aims to limit the outbound shipment of onions and increase their availability in the domestic market. The decision comes after a 40% duty on onion exports failed to deter traders. Additionally, the government plans to procure an additional two lakh tonnes of onions to add to the existing five lakh tonnes in its buffer. The price of onions has surged due to a decline in the winter crop and delayed arrival of summer produce.

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