The Hindu Business Line : Onion prices may drop in first week of March

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Hyderabad Feb. 23 Onion prices, which have been ruling high for the last few weeks, are likely to come down in the first week of March, with the markets expecting fresh arrivals from Kurnool and Tandur.

The price of grade one onion saw a maximum of Rs 1,190 a quintal this month as against Rs 315 in the same month last year. This was due to a steep dip in arrivals. The price of grade two too witnessed a maximum of Rs 730 (Rs 205).

"The produce changes at least two to three hands before reaching the consumer. As a result, the price went up to Rs 18-20 a kg this month," a senior official at the Mahboob Mansion market yard, the main market for onions, told Business Line.

Political issue

The rising onion prices have become a political issue in Andhra Pradesh with the Opposition criticising the Government for not being able to contain the prices. The Government had to intervene by offering huge quantities of onion through rythu bazaars.

Huge arrivals of onion in November and December last pulled down the prices significantly. The total arrivals of grade one onions in November were put at 1.37 lakh quintals as against 70,587 quintals in the same month the previous year.

Arrivals of grade two too almost doubled to 2.06 lakh quintals from 1.05 lakh quintals.

As a result, price of grade one dipped to Rs 470 (Rs 805) and that of grade two to Rs 265 (Rs 485). A bulk of the arrivals was from the neighbouring Karnataka. This had resulted in the steep fall in local prices.

`Best season'

"There is a change in situation and the arrivals have started declining in January and February, when compared to the same period last year. The decline gives raise to increase in prices," he said.

"This has been the best season for us in the last 10 years. We never got the price," Mr Ramana Reddy, an onion farmer, said.

While admitting that the prices would come down early next month as arrivals from local feeders begin, he predicted that prices would settle at Rs 7-8, still a better deal for the farmers.

More Stories on : Horticulture/Fruits & Vegetables | Andhra Pradesh

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