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Fluctuating Prices in India’s Major Vegetable Markets Impact Onion and Tomato Trade

by Tatyana Ivanovich
August 12, 2024
in AGROTECHNOLOGY
0
Fluctuating Prices in India’s Major Vegetable Markets Impact Onion and Tomato Trade

Lasalgaon Sees Onion Prices Surge by 21% as Tomato Prices in Pimpalgaon Drop by 30%

In the past week, significant price fluctuations in India’s major vegetable markets have drawn the attention of farmers, agronomists, and agricultural stakeholders. Lasalgaon Agricultural Produce Market Committee (APMC), the country’s largest onion market, recorded a 21% increase in the average wholesale price of onions. Conversely, Pimpalgaon APMC, known for being India’s leading tomato market, saw a sharp 30% decrease in the average wholesale price of tomatoes.

The rise in onion prices at Lasalgaon can be attributed to a surge in domestic demand that has outpaced supply. Over the week, onion prices escalated from ₹2,725 to ₹3,300 per 100 kilograms, reflecting the growing strain on available stocks. This price hike comes amidst a significant decrease in daily arrivals, which dropped to 900 tons from the usual 1,500 tons. The reduction in supply is largely attributed to adverse weather conditions affecting the region.

Manoj Jain, an established onion trader in Lasalgaon, explained, “Export demand from Sri Lanka has risen in recent days alongside demand in domestic markets.” This combination of increased domestic and international demand, coupled with supply constraints, has driven the upward trend in onion prices.

In contrast, Pimpalgaon APMC experienced a notable decrease in tomato prices, driven by an increase in supply that outpaced current demand. Over the same period, the average wholesale price of tomatoes fell from ₹461 to ₹350 per 20-kilogram crate. This price drop highlights the sensitivity of the market to supply fluctuations, as farmers in the region respond to favorable growing conditions that have bolstered output.

These market developments underscore the dynamic nature of India’s agricultural trade, where weather patterns and market demand play pivotal roles in determining price movements. Stakeholders across the supply chain, from farmers to traders and exporters, must navigate these fluctuations carefully to manage risk and capitalize on emerging opportunities.

Tags: Agricultural TradeIndiaLasalgaon APMConion pricesPimpalgaon APMCsupply and demandtomato pricesvegetable market fluctuationswholesale prices
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