“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 suppliers like Pakistan. There is a slight decline of Rs 2-3/kg in wholesale rates in the last few days as rains have adversely affected quality of onions in transit, while demand has declined in north India due to start of the holy month of Shravana, when onion consumption traditionally falls.
“If the rainfall does not affect the crop that would be harvested in south India after mid-August, we may see prices rule in the present range,” said onion trader Manoj Jain from Lasalgaon.
Pune: 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.
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 suppliers like Pakistan.
There is a slight decline of Rs 2-3/kg in wholesale rates in the last few days as rains have adversely affected quality of onions in transit, while demand has declined in north India due to start of the holy month of Shravana, when onion consumption traditionally falls.
“If the rainfall does not affect the crop that would be harvested in south India after mid-August, we may see prices rule in the present range,” said onion trader Manoj Jain from Lasalgaon.