Mandi prices of key vegetables fall on robust supply

Mandi prices of onion, garlic and tomato have witnessed a sharp decline compared to last year as supplies improved on the back of more than adequate monsoon rains in key producer states of Maharashtra, Karnataka, Andhra Pradesh and Madhya Pradesh.

Traders say that prices of these key agricultural commodities are expected to remain depressed in the next two months given bumper production and adequate supplies.

Traders said that the production of stored rabi onion (which is currently being supplied), which has a share of around 60% in the total output, has been around 20% more than the last year in Maharashtra and Karnataka, the key producing states.

At Azadpur, Asia’s biggest market for fruits and vegetables, onion prices are ruling around Rs 15/ a kg while modal retails prices as per the ministry of consumer affairs was Rs 25/a kg.

Also read: India to incentivize rupee-settled exports to boost Russia trade -sources

“Prices were ruling around Rs 30/ a kg last year, because of lower production,” Giriraj Chauhan, a trader or commission agent at the Azadpur mandi, said`

Onion production in the 2021-22 crop year is estimated at 31.7 million tonne (MT), which is 20% more than the previous year.

Garlic mandi prices in Indore, Madhya Pradesh, the key producer of the crop has declined by more than 50% to Rs 2000 a quintal from around Rs 4000 a quintal.

A glut in garlic production this year in the Mandsaur region has led to a crash in price, leaving farmers in distress.

“The prices of garlic are so low that farmers cannot even recover the money they had invested in cultivation,” Rajesh Patidar, a commission agent, Indore, one of the biggest market in Madhya Pradesh, told FE. Farmers are getting roughly around Rs 10 or Rs 15 a kg for garlic this season which was just the double last year, he said.

Also read: Commerce department rejig to make it future-ready: Piyush Goyal

Mandsaur, Shajapur, Ujjain and Neemuch districts of Madhya Pradesh are the key producing belt for garlic.

In terms of production, garlic production rose marginally to a record 3.27 million tonne (MT) in 2021-22 crop year against a the previous year. Madhya Pradesh has a share of more than 63% in the country’s garlic production.

The benchmark mandi prices of tomato at Kolar in Karnataka stood at Rs 870 per quintal on Wednesday, down by around 10% from a year ago and at least 24% below the last three year’s seasonal average. In June, mandi price was prevailing at more than Rs 3,000 a quintal, which pushed retail prices to Rs 90/100 a kg.

Heat waves during March-April in the key tomato-growing states of Maharashtra, Karnataka and Andhra Pradesh adversely impacted production and pushed up prices across the country in June. Currently, retail prices are at Rs 35/40 a kg across major cities.

However, prices of potato in Agra market rose by 64% to Rs 1,500 a quintal from a year ago because of record production last year. Traders say prices are expected to rise prior to the arrival of next year’s crop by October. Retail prices are in the range of Rs 25/30 a kg.

In July, inflation for potato and tomato rose by 23.79% and 44%, respectively, while garlic and onion price inflation was down 29.73% and 20.57% on year.