Onion market strike sparks price concern

The onion crisis in India could intensify further as the Agricultural Produce Market Committee (APMC) constituents in Nashik, home to the largest onion market in Asia, have declared an indefinite strike, two days after the Centre imposed a 40% export tax to pre-empt a price spike, following skyrocketing tomato prices on low supply.

- Ram Sahgal

Retail prices of onion have risen from ₹25-30 a kilogramme (kg) to ₹35-40 kg in parts of Mumbai over the past week and could rise further if the strike spreads to other onion-producing centres of Maharashtra as supply would be hit and due to hoarding by some large traders, according to a Mumbai-based exporter.

India produced 31.8 million tonnes of onion in FY23 and 31.7 million tonnes in FY22. Maharashtra produces 40% of India’s onion crop.