Onion prices ruled steady in markets around growing areas this week as arrivals and demand were in balance.
However, with rain lashing the onion belt of Maharashtra comprising Nashik, Pune and Ahmednagar, prices could gain as arrivals are likely to be lower.
“Prices are fairly steady. Buyers from the South bid at higher prices as also exporters to the Gulf,” said Rupesh Jaju, Director of Nashik-based United Pacific Agro Pvt Ltd.
Onion was traded between Rs 460 and Rs 700 this week with export quality trading at Rs 600-650. Since Wednesday, 30,000 tonnes arrived in Maharashtra markets.
“Export demand is good. Shipments to Malaysia and Sri Lanka have picked up,” said Jaju. “Demand from the north-eastern parts is also good,” he said.
In Lasalgaon Agricultural Produce Marketing Committee (APMC) yard, Asia’s biggest onion market, the modal price or the rate at which most trades took place was Rs 540 a quintal despite arrivals touching nearly 2,000 tonnes.
Though onion prices surged in the first half of July, they have stabilised after the growing regions got adequate rains. During the last two weeks, onion has been moving sideways.