Heavy rains and subsequent lower arrivals have resulted in onion prices once again touching the roofs. Prices of onions in the retail market in Mumbai is around Rs 30 per kilogram as against Rs 6-8 per kg in May. Wholesale prices at the APMC market in Navi Mumbai is in the range of Rs 2200-Rs 2400 per quintal for superior quality onions, while for the lower quality, prices are in the range of Rs 2000-Rs 2200 per quintal.Arrivals in Mumbai market is in the range of 45 trucks as against 100 trucks normally at this time of the year. Traders feel that prices are likely to remain high for the next 15-20 days. Arrivals are also depressed in other mandis like Pune. They have slowed down partly because farmers are holding on to the crop in anticipation of higher prices. Arrivals from all onion growing areas in Maharshtra, which account for nearly 70 per cent of the country's output, have also slowed down. Among the major onion growing areas in the state are Manmad, Sholapur, Dhule, Nasik and Jalgaon.
Traders saythere will be no respite in prices till the new crop arrives in October. Onion is grown in three phases in a crop year starting October or the kharif season. It is grown between October-December and January-February and thereafter in the rabi crop during April-May.
During July-September, usually it is the stocks which is rolled on for domestic consumption.
Traders say export of onions is not really the reason for higher prices in the domestic market. Exports during July and August were only one-third of last year's shipments and, therefore, prices had not shot up due to exports.
Prices for exports have been raised in line with the domestic prices. As demand for Indian onion is high, those interested in it would be willing to pay a higher price. Exports of onion make up 90 per cent of India's vegetable shipments and brings in over rs 300 crore annually.
Nafed to import onions
The National Agricultural Cooperative Marketing Federation of India Limited (Nafed) may import 10 to 15 thousand metrictonne onion to ease domestic prices. The decision was taken at a meeting of Nafed officials and Associated Shippers of Onions at Nafed's western region office, convened by the federation chairman Ajit Kumar Singh. The meeting was convened following talks between union minister of state for agriculture Som Pal and Ajit Kumar wherein the minister expressed his concern over the sharp rise in the domestic price of onions, according to a Nafed release.
The meeting opined that the situation arising out of the steep hike in onion prices could be improved by increasing availability of onions to consumers.It was observed that the present onion stock was not enough and there was still a gap of a month before the new crop comes into market, the release said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.