Onion prices continued to decline this week despite lower arrivals due to lack of buying.

Trading in Lasalgaon in Maharashtra, Asia's largest onion market, was affected as farmers protested against low price. Prices for poor quality onions crashed to Rs 200 a quintal on Wednesday.

Trading was affected on Wednesday and Thursday but recommenced on Friday.

Elsewhere in Maharashtra and Gujarat, normal trading took place. Some stability was seen returning to market on Friday as arrivals dropped sharply.

In Pimpalgaon, the modal price or the rates at which most trades took place increased to Rs 775 a quintal against Rs 721 on Thursday as arrivals dropped to 582.5 tonnes from 650 tonnes.

In Pune, however, the modal price dropped to Rs 650 a quintal from Rs 675 despite arrivals slipping to 1,146 tonnes (2,428 tonnes).

“Buyers seem to have completed their purchases as arrivals flooded markets last week.

Exports decision

Though arrivals were lower this week, no buying was seen,” said Mr Madan Prakash, Director of Rajathi Group that trades in onion.

Onion prices are seen stabilising around this level, though any decision to resume exports could help push them higher.

Following protests by farmers, a proposal has been sent to the Union Government to resume exports that have been banned since mid-December when prices touched Rs 6,500 a quintal at Lasalgaon.

Prices surged in December as the early kharif onion crop was damaged due to unseasonal rain in November. The crop arrival was also delayed.

With kharif onions flooding markets now instead of late December and early January, prices have nosedived, leading to protests by farmers.

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