Onion prices rose to a six-month high on Friday as fears over monsoon playing truant in growing areas gripped markets.

“There was a rising trend in onion as arrivals also stabilised this week,” said Mr Rupesh Jaju, Director of Nashik-based United Pacific Agro Pvt Ltd.

Since Wednesday, 22,000 tonnes of onion arrived in various markets of Maharashtra. Ahmednagar accounted for 40 per cent of the arrivals, while Nashik contributed 35 per cent.

“Quality onions commanded between Rs 650 and Rs 780 a quintal. On the higher side, onions fetched Rs 620 on an average,” said Mr Jaju.

On the lower side, the average price was Rs 430 and the gross average price was Rs 530.

“Regions where onion is grown in Maharashtra as early and late kharif crop are yet to get rain. It is causing concern and has begun pushing up prices,” he said.

At Nashik Agricultural Produce Marketing Committee yard, the modal price or the rate at which most trades took place on Friday was Rs 545 a quintal, the highest since December 18. Arrivals were over 1,000 tonnes.

Onion exports are also doing well. Gulf and Far-East countries are buying Indian onion and enquiries are stable, according to Mr Jaju.

Any further disruption in monsoon could lead to onion prices gaining further.

mrsubramani@thehindu.co.in

(This article was published on June 29, 2012)
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