Onion prices have begun to decline with arrivals of the early kharif crop increasing in growing centres in Maharashtra and Gujarat.

Good production in Karnataka, too, is putting pressure on prices.

“Besides higher arrivals, demand, both domestic and for exports, has declined, leading to a slipping trend,” said Madan Prakash, Executive Director of Rajathi Group of Companies, that exports agricultural produce.

Prices, however, increased in Pune as it was among the very few markets that functioned in Maharashtra, where most were shut for Diwali and other festivities.

Arrivals in Pune Agricultural Produce Marketing Committee (APMC) yard were lower compared with the demand.

On Friday, the modal price or the rate at which most trades took place was Rs 1,100 a quintal with over 700 tonnes arriving in the market. The market opened after four days, leading to a higher offtake.

“Demand (otherwise) in the domestic market is low since festivals are over for now. There is not much movement in onion,” said Prakash.

On the other hand, the entry of Pakistan onion in the global market has made things tough for the Indian vegetable. Pakistan onion is available at a competitive price and it has begun gaining ground in countries that had been buying from India so far.

“Export demand is far lower that what it was two to three weeks ago. Pakistan cargoes are finding their way to destinations such as Malaysia,” said Prakash.

In such circumstances, onion prices are likely to decline further with kharif arrivals set to flood markets next week when they begin functioning fully.

subramani.mancombu@thehindu.co.in

(This article was published on November 16, 2012)
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