Onion prices likely to go up with drop in arrival

With the Rabi crop supplies almost disappearing from the market, onion prices surged by 75-100 per cent during the past fortnight and may shoot up further as recent heavy rains hit the onion arrivals. And the supplies from Maharashtra, the country's main onion supplier, also slowed down due to heavy rains. Next crop from Kharif is expected only from September last week, and until then, the price rise is likely to continue, according to a top official at Malakpet Agriculture Market Committee, which is the principal market in the state as it receives supplies from Aurangabad, Nashik, Ahmednagar, Kolar and Kurnool.

In just two weeks, onion price per quintal rose to `1,800 to `2,000 from `900 to `1,000 level, while retail price shot up to `25 per kg from `10 to `15. Traders at Malakpet market yard said that on an average, 25 trucks of onions are reaching these days as against 100 trucks earlier. Onion prices rose to `20 per kg at the benchmark Lasalgaon agriculture produce market committee in Nashik district.

“Onion prices quickly shot over 75 per cent as supplies reduced drastically,” Ms Shaheen Afrose, chairperson, Malakpet market panel, told this newspaper.

“Kharif crop will hit the market in the last week of September. Until then, the price rise is likely to continue,” said A. Chandrashekhar, grade-1 secretary at Malakpet gunj.

Encouraging Rabi crop hammered down prices to `500 a quintal and later it recovered to `900.

Apart from this, exports of onions are taking place gradually since the Centre lifted restrictions on minimum export price in February. The MEP was $850 per tonne and later it was reduced to $700 per tonne in January.