Wholesale onion prices in Maharashtra have seen a significant increase, with key agricultural markets like Lasalgaon and Pimpalgaon reporting surges of 25-28% over the past week. This sharp rise, recorded as of August 14, 2026, is primarily attributed to a steep decline in arrivals caused by persistent rainfall across Nashik district.
Lasalgaon and Pimpalgaon See Price Hikes
At the Lasalgaon Agriculture Produce Market Committee (APMC), the average wholesale price for onions climbed by 25% in just five trading days. Prices rose from ₹2,180 per quintal on August 8 to ₹2,760 per quintal by Thursday. Similarly, the Pimpalgaon APMC experienced an almost 28% increase over six days, with average prices moving from ₹2,300 per quintal to ₹2,950 per quintal.
Daily arrivals at the Lasalgaon APMC have plummeted by nearly 50% in the last two weeks, falling from approximately 15,000 quintals to about 8,000 quintals. This drastic reduction in supply, coupled with steady demand, has created upward pressure on prices.
Causes of the Supply Crunch
Market officials and traders point to several factors contributing to the current situation:
- Continuous Rainfall: Heavy and continuous rainfall in the Nashik district has severely impacted the movement of produce, leading to reduced arrivals at the mandis.
- Delayed Kharif Crop: There has been a delay in the arrival of the kharif onion crop from southern India, largely due to late sowing. This has further tightened the overall supply in the market.
- Limited Summer Onion Release: Markets are currently relying on stored summer onions, harvested during March and April. Farmers, facing immediate financial needs, are bringing limited quantities from their storage facilities, but persistent rainfall hinders even this movement.
Government Intervention Planned
In response to the escalating prices, the government is reportedly preparing to begin selling buffer stock onions from the first week of September. This measure aims to stabilize the market and prevent any further significant price increases, ensuring greater availability for consumers.