Onion prices likely to remain high till Jan, predict experts

The Central Government has enacted Minimum Export Price (MEP) on onions at $850/ton to stem the rising prices of onions but the prices have remained high due to heavy demand upcountry. The onion prices are likely to remain high (around Rs 40/kg wholesale) till January, experts predicted.

The exporter has to sell at the MEP rate or above it in foreign markets. In some cases the MEP is above the prevailing international rate and exports are indirectly lowered. The price of the commodity then falls in the domestic market.

“There is heavy demand for onion throughout the country and abroad. MEP or anything else cannot affect the demand and supply ratio,” stated Lasalgaon Agriculture Produce Market committee (APMC) director Rajendra Dhokale. He said that exports were continuing and prices have not fallen in the domestic market even after MEP and predicted that prices would remain stable.

In Nashik the freshly harvested ‘Lal’ variety is being traded as stocks of the premium ‘Unhal’ variety are depleting. ‘Lal’ can be stored for only a month while ‘Unhal’ keeps for nearly 10 months in onion chawls and nearly 2 years in cold storage. However, the ‘Rangda’ variety onion, which has good export potential will be harvested by December end or January, according to Chandwad (Nashik) APMC Chairman Dr Atmaram Kumbharde.