Onion prices double due to low arrivals from Maharashtra

New Delhi, Aug 8: Onion prices have doubled in north India, in the wake of delayed rains and reduced arrivals from Maharashtra, while the local produce has been mostly sold off affecting the overall volumes traded. “There was no rain in the May-June period in the Pune-Nasik region resulting in late sowing of the new crop, forcing farmers to withhold old stocks in anticipation of better prices later,” Pimpal gaon-based trader Vijay Bafna said.

“Prices have shot up from Rs four a kg to Rs eight as stocks have been depleted and trade has come down in Delhi market to 75 trucks from 125 trucks daily,” Mr Padam Chand of Potatoes and Onions Merchant Association (Poma) here added.

However, Mr Bafna said Nafed’s decision to suspend onion export for a fortnight had a soothing effect, bringing down prices by Rs 50 a quintal in the Nasik region which could decline further. Mr Padam Chand explained that most of the trade carried on till now had been of the local produce from states adjoining Delhi like Haryana, Uttar Pradesh and Rajasthan. But that has been mostly sold off and arrivals from Maharashtra had been slow in coming, he said adding that it was an all India phenomenon and not restricted to Delhi alone.

“Arrivals in Pimpal Gaon market had gone down by 50 per cent to 75 trucks from the normal 150 causing the prices to rise to upto Rs 650 per quintal, Mr Bafna said.” Poma’s Surinder Buddhiraja said hardly 40 trucks of 12 tonnes each were from the Maharashtra origin. He added another reason for the price rise was the better quality of the crop. Mr Bafna said Nafed’s decision had reassured the farmers that there would not be much shortage compared to the demand and they would begin releasing more volumes into the market.

Sowing of the new crop had also begun, rains were now normal and in these circumstances prices could again slip down to Rs 500 per quintal, he added. Mr Buddhiraja felt there was no need for panic as Rs eight a kg was a normal price, giving reasonable returns to the farmers.

He said exports should be curbed only if the prices touch the Rs 10 kg mark thereby becoming detrimental to consumer’s interests. Onions had been sold even at a ludicrously low price of Rs two per kg in the May-June period, when it cost a Maharashtra farmer Rs three per kg in freight, packaging, and labour charges to market his produce in north India.

Witholding of stocks due to a lower price was also counter-productive due to the perishable nature of the commodity, as it resulted in 20-50 per cent losses which again had an inflationary impact he added.

-- PTI