Onion auction closed at Lasalgaon, which is being investigated by the Income Tax Department

Mumbai, Ta. 16 October 2020, Friday

The onion auction at the country's largest Lasalgaon wholesale market has been disrupted for the past two days as the Income Tax Department is investigating the residences and offices of traders working in the Lasalgaon market of onions in Nashik. Traders avoided participating in the auction following the Income Tax Department's action. Onion prices were higher in other markets in Nashik.

Farmers who came to sell goods at Lasalgaon market were forced to take their onions to other markets.

Even after the ban on onion exports by the central government, the fluctuations in its prices have resulted in action being taken against traders, sources in the income tax department said.

Sources also said that the Income Tax Department officials had checked the records of the auction. It was claimed that onion traders were stockpiling goods and doing black marketing.

Onion prices in other markets at Nashik are hovering between Rs 200 and Rs 2,000 per quintal. The recent rains have affected the onion crop, pushing up prices, market sources said. Earlier, onion prices had touched Rs 61 per quintal in January this year.

With the exception of a few APMCs in Nashik district, the new onion revenue at Lasalgaon has not started yet. The onions that are currently arriving are those harvested in March and April. This quantity is also coming in limited quantities.