Onion prices tended to stabilise this week with the rates improving marginally at markets around growing centres. Prices stabilised despite heavy arrivals in markets. One reason was further lowering of the minimum support price to $225 from $275, while the other was demand coming in from the eastern parts.

“We saw a normal demand but buying for areas such as West Bengal and Siliguri was higher,” said Mr Madan Prakash, Director of Chennai-based Rajathi Group of companies that is into onion exports. “This is a normal phenomenon. Prices will go up or come down Rs 100 a quintal during these times,” said Dr R.P. Gupta, Director of National Horticultural Research Foundation.

On Friday, the modal price or rates at which most trades took place in Pune was Rs 460 a quintal against the week's highest arrivals of over 2,400 tonnes. At Lasalgaon, the most important market, the modal price was Rs 430 a quintal against Rs 361 last week.

Arrivals

Arrivals were over 1,500 tonnes against 2,600 tonnes last Friday. Dr Gupta said markets would tend to move either way especially when some markets are closed for March-ending. Mr Rupesh Jaju, Director of Nashik-based United Pacific Agro Pvt Ltd, said 60 per cent of the arrivals was the red onion harvested during kharif, while the rest was onion grown in kharif.

“Kharif onions are sold between Rs 200 and Rs 350 a quintal. They cannot be stored,” he said.

Rabi onions that can be stored and in demand from exporters are ruling around Rs 400-500 a quintal, he said. Quality onions from the rabi harvest are commanding Rs 700-750 a quintal. Prices are likely to rule around these levels for the next 3-4 months, Mr Jaju said.

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