Lower kharif sowing firms up onions

Onion prices firmed up further this week on speculation that the kharif crop could be lower than last year.

“Onion prices have gained a little. They were ruling stable during May-July. Monsoon has been erratic and scanty in Karnataka, Maharashtra and Gujarat. Onion farmers have been unable to transplant seedlings. Only around 80 per cent of the normal area under kharif onion has been covered,” said Dr R.P. Gupta, Director of National Horticultural Research Foundation.

At Asia's largest onion market in Lasalgaon, Maharashtra, the modal price or the rate at which most trades took place hit Rs 1,000 a quintal during the last three days of the week. On Thursday, it was Rs 1,025 before slipping to Rs 1,001 on Friday.

Arrivals in the Lasalgaon Agricultural Produce Marketing Committee yard were over 800 tonnes throughout the week. On Thursday, arrivals were over 1,000 tonnes.

“There is no need to panic about the crop. There is sufficient quantity in store from the rabi crop,” said Dr Gupta.

On the price surge, he said some compensation was necessary for farmers for the rot, loss or sprout. “This is a normal Re 1-Rs 2 hike,” he said.

“Farmers will release stocks slowly as prices increase,” Dr Gupta said.

On the other hand, a lukewarm demand for export is keeping a leash on prices. “Demand for export is only 50-60 per cent of what it was last year,” he said.

Prices have been kept under a check by the austere periods of Ramzan and Shravan , too.

“Some people do not take onions during this period. It is also helping,” said Dr Gupta.

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