Onion prices dip with increased arrivals

After the government took measures like stopping onion exports, curbing the purchases of merchants to only 500 quintals per day and bringing South Indian onion stock, there is a dip in the onion price-run in a week.

On Tuesday, onion was traded at a maximum of Rs 31.82 per kilogram (kg) compared to Rs 38.25 per kg on October 10, a difference of Rs 6.43 per kg. The minimum prices too dropped to Rs 11.01 per kg on Tuesday, as compared to Rs 14.51 per kg registered on October 10, a difference of Rs 3.50 per kg.

Lasalgaon Agricultural Produce Market Committee (APMS) Chairwoman Suvarna Jagtap said that adding onion stock to the market is the only alternative to farmers and have managed to increase the stock. “Earlier about 25 to 30 per cent of onion was being exported and the farmers who had export quality onion, had an option. Exports would have continued even if the Minimum Export Price (MEP) on onion would have been increased, but now there are no exports,” she said.

Secondly, new onion from Andhra Pradesh, Tamil Nadu and Bangalore has begun arriving to the local markets. While earlier there were only Nashik onions. Nashik’s new onion, the ‘Laal‘ or red variety will also begin arriving a fortnight after Diwali which will help to drop the prices further, Suvarna Jagtap stated.

Onion markets are closed on Saturdays and Sundays. Immediately on Monday and Tuesday, there were more arrivals, which further reduced prices, she added.

Onion farmers received a boost with onion chawls – a wooden airy godown to store onions. ‘Unhal’ variety onion, which is harvested till March has a double skin and can be stored from eight to 10 months. Merchants too have huge onion chawls. The stored onion is brought to the market, when the price is right. The other varieties like red onion perish in about a month. Lasalgaon village in Niphad tehsil of Nashik, has possibly the biggest onion market in the world and the largest acreage of onion.