Agri Business

Higher arrivals cool onion prices

M. R. Subramani Chennai | Updated on February 06, 2011

2009100851631701   -  Business Line

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Onion arrivals flooded Maharashtra and Gujarat markets resulting in prices dropping to below Rs 1,500 a quintal in many places. The quality of arrivals is also reported to be good.

“There is a deluge of arrivals in the markets. In Nashik, prices have dropped to Rs 1,200-1,300 a quintal,” said Mr Madan Prakash, Director of Chennai-based Rajathi Group of Companies that trades in the bulb.

“The arrivals we see now should have happened in the middle of December. They got delayed, leading to rise in prices. The correction is happening now,” said Mr Rupesh Jaju, Director at the Nashik-based United Pacific Agro Pvt Ltd.

In fact, prices have dropped lower than what they were during the same period a year ago. Arrivals, too, are higher than the same period a year ago.

Throughout this week, arrivals in each market around Nashik and Pune were over 1,500 tonnes.

Kharif onion crop was hit by unseasonal rain in November. It also led to delay in arrival.

“Prices have now dropped to Rs 600-1,000 levels since they had surged too high,” said Mr Jaju.

However, in Gujarat, the late kharif crop arrival has led to drop in prices. “The crop arrival is on time. We are getting good and medium quality onions,” said Mr Jamanbhai Patel, a trader at Gondal, 100 km from Rajkot.

Prices could see further correction by Rs 200-300 a quintal, said Mr Jaju.

Exports to resume?

The price drop could worry farmers and traders are of the view that demand to resume exports will crop up.

“If exports are to resume, then expect prices to increase Rs 400-500 a quintal,” Mr Jaju said.

Trading sources said despite ban on onion exports, clandestine shipments were taking place through the porous border with Bangladesh.

Published on February 04, 2011

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