Onion to stay on hot plate for a fortnight, say traders
Onion prices are expected to stay elevated at least for a fortnight as farmers are delaying sale of their harvest, expecting better prices as seen by a 50% drop in arrivals at the benchmark Lasalgaon market in Nashik. Arrival of the new crop from south India is likely to help soften onion prices from mid-August, say traders.
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Onion arrivals at Lasalgaon this month till July 29 is 537,000 quintals against 1.076 million quintals in the year-ago period. The sharp drop reflects lower rabi output and withholding of fresh crop by farmers.
«Onion prices may continue to remain in this range for at least 10/12 days. Ongoing government procurement, which may continue for another one or two weeks and less arrival in the market may hold prices firm,» said Vikas Singh, a Maharashtra-based onion exporter.
The Centre is procuring onions at market prices to create a buffer stock of 500,000 tonnes, which is also giving support to onion prices.
«Prices may start going down by mid-August once the arrival of the new onion crop from south India begins,» said Singh.
Wholesale prices of onions are currently in the range of ₹28-32/kg across various markets such as Delhi, Nashik, and Bengaluru.
Onion exporters told ET that exports have fallen to negligible quantities due to the 40% export duty imposed by the Indian government and better supplies from rival
