Onion prices ruled firm in Maharashtra and Gujarat markets, the major growing States, on lower arrivals and export demand.

The modal price or rates at which most trades took place ruled at Rs 500 a quintal at the Pune Agricultural Produce Marketing Committee yard. Compared with last week, prices were up Rs 10. In markets such as Lasalgaon, Pimpalgaon and Umrane, prices ruled between Rs 550 and Rs 600 a quintal.

“Prices have increased marginally as growers are holding back their produce,” said Mr Rupesh Jaju, Director of Nashik-based United Pacific Agro Pvt Ltd. The holding back of produce has seen arrivals in markets drop, compared with volumes seen a month ago.

On Thursday, Pune received 1,300 tonnes, while in Mumbai arrivals were 1,265 tonnes. “Nashik and Lasalgaon, together, saw arrivals of 800 tonnes and in Umrane arrivals were 600 tonnes,” said Mr Jaju.

Two weeks ago, arrivals in each market exceeded 1,500 tonnes.

Export demand

Domestic demand for onion continues and it is a reason why prices are ruling firm. “Export demand, too, continues to be good. Shipments are going to countries in Europe, West Asia and Far-East Asia,” Mr Jaju said.

Indian onions are the most competitive in the global market after the Government reduced the minimum export price to $175 a tonne. The Centre had banned onion exports in December when prices soared to around Rs 100 a kg at retail outlets.

The ban, however, was relaxed in February with the Centre fixing a minimum export price. Initially, it was fixed at $600 but four revisions in March saw the floor price drop to $175. “Prices are expected to be rule stable with a bias towards the upper side,” said Mr Jaju.

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