Poor quality drags onion down

M. R. Subramani Chennai | Updated on March 12, 2018 Published on December 23, 2011


Poor quality of arrivals continued to affect onion prices in markets around growing centres in Maharashtra and Gujarat. The drop in prices has resulted in farmers even staging road blockades earlier in the week.

A move by the Karnataka Government to procure onions at price slots of Rs 700, Rs 500 and Rs 300 a quintal, based on quality, has further angered farmers in Maharashtra, according to trade sources.

“Prices are reflection of quality of onions that are arriving in Maharashtra. Good quality onions are commanding prices between Rs 600 and Rs 900. It is poor quality onions that are getting lower price,” said Mr Rupesh Jaju, Director of Nashik-based United Pacific Agro Pvt Ltd.

Nearly 11,400 tonnes have arrived in the last three days and at least 70 per cent was of poor quality, trade sources said.

In the Rajkot Agricultural Produce Marketing Committee (APMC) yard, the modal price or the rate at which most trades took place dropped to Rs 400 a quintal. In the Lasalgaon APMC in Maharashtra, the modal price on Thursday was down to Rs 475 a quintal.

“Exporters are unable to get orders at current minimum export price of $250 a tonne. In the global market, onion has dropped to $200 a tonne. We have suggested that the export floor price be cut to $150,” said Dr R.P. Gupta, Director of National Horticulture Research and Development Foundation in Nashik.

“Some exports are taking place. Shipments are going to the Gulf and Malaysia,” said Mr Jaju.

Quality of kharif onion has been affected by lack of rains. The late kharif onion expected to arrive in a fortnight's time could also be affected due to the same factor.

“In two weeks time, we are going to see kharif and late kharif onions flooding markets. Prices could come under further pressure,” said Dr R.P. Gupta.

“If the quality of late kharif is better, then prices could improve,” said Mr Jaju.

Prices in the coming week are expected to rule flat.

> [email protected]

Published on December 23, 2011
This article is closed for comments.
Please Email the Editor