Onion prices may go up on kharif crop delay

Sep 03 2014, 01:21 IST
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SummaryConsumers should be prepared to shell out more money for onions this September.

Consumers should be prepared to shell out more money for onions this September. According to senior officials

of the National Horticulture Research and Development Board (NHRDF), there may be a 5-10% hike in prices

this month owing to delay

in kharif crop arrivals in

the market.

The late monsoon has led to further delay in sowing and, as a result, there is a gap between stocks being brought out by farmers and traders and new arrivals in the market, officials said.

"New kharif crop arrivals usually begin by September. However, this time the arrivals can be delayed till October 15-20. Fresh crop arrivals have begun in Bangalore, Hyderabad and Kurnool, but delayed in Nashik, Satara and Pune regions because of delay in monsoon," RP Gupta, director, NHRDF, said.

"The government did put restrictions when prices had become high in the last couple of months. However, the stored stock cannot meet market demand. Therefore it is assumed that prices will increase this month since the new arrivals will take another month. Onion imports have eased the situation a bit so prices will not shoot up as before," Gupta explained. At present, the stock on hand is 15-16 lakh tonne.

According to Gupta, stored onions are usually brought into the market in August and from September, the ratio of the fresh crop is around 60% with 40% of stored stock. In October, the consumption of fresh stock versus stored stock is 50:50 and November onwards, 90% of fresh stock comes into the market.

On Tuesday, around 15,500 quintals arrived at Lasalgaon, the main onion hub. Modal prices touched R1,525 per quintal, with the minimum varying from R400 per quintal and maximum prices touching R1,881 per quintal. On Monday, modal prices touched R1,575 per quintal and 17,040 quintals arrived in the market.

Traders have imported 15 containers of onions from Egypt. Eight containers were received at Lasalgaon and seven were offloaded in Mumbai. According to senior officials, around 700 MT of onions were imported by private traders. The landed cost of onion at Lasalgaon works out to R25 a kg, which is higher than R15-20 a kg quoted in India. Therefore, wholesale prices should range between R20-26 per kg, Gupta said.

Nanasaheb Patil, chairman, Agriculture Produce Market Committee, Lasalgaon, and director of Nafed, did not agree with the views of NHRDF and said there is no scarcity of onions in India. "Market arrivals at Lasalgaon are

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