The ongoing Income Tax Department raids on large onion traders in Lasalgaon and other areas of Maharashtra has pushed the market in a bearish mood. Protesting traders did not participate in the auctions on Friday.
On Thursday, as the raids commenced, prices dipped by 30 per cent, resulting in farmers protesting against the raids and stopping the auction process. Depending on onion quality, the average prices crashed from ₹1,330 per quintal to ₹900 per quintal.
Lalsalgaon is the largest onion market in the country with a daily trade of about 15,000 to 20,000 quintals. The big traders who were raided control almost 30 per cent of the trade.
Jaydutt Holkar, the Chairman of the Lasalgaon Agriculture Market Committee, said nine big traders have been raided. This action by I-T Department affected the market sentiment, therefore, trading remained suspended on Friday but it will resume on Monday, he said.
According to data from the Agmarknet portal of the Agriculture Ministry, prices in Lasalgaon reached a low of ₹600 and a high of ₹1,331 per quintal while the modal price was ₹ 1,000 per quintal.