Export curbs help onion prices to fall below Rs.50/kg

Source: PTI

Wholesale prices of onion on Tuesday fell below the Rs.50 per kg mark at the Lasalgaon in Maharashtra, Asia's biggest onion market, due to curbs on exports and fear of action against hoarding. Even at Azadpur mandi in Delhi, wholesale onion price declined by Rs.3-5 per kg to Rs.53 on Tuesday on increase in arrival of new crop from Karnataka and Andhra Pradesh. However, retail onion prices across the country continue to rule as high as Rs.80 per kg. At Lasalgaon, which sets the price trend across the country, the wholesale onion price declined to Rs.48.5 per kg on Tuesday from Rs.57 per kg last week, according to the data maintained by Nashik-based National Horticultural Research and Development Foundation (NHRDF). “Prices declined due to increase in arrival in the mandis,” NHRDF Director R P Gupta said. Arrival of onion increased as farmers/traders brought more stock for sale after the government imposed restriction on overseas sale by raising export price sharply to $700 per tonne from $425, Nashik-based traders said. Also, fear of action against hoarding along with MMTC importing 10,000 tonnes of onion helped, they added. On Monday, the Centre had asked the Maharashtra government to crack down on hoarders and take adequate measures. Onion prices both in the retail and wholesale markets have been rising unabated in the wake of shortage of five lakh tonnes of onion in the country. There is apprehension that this year's kharif output may get affected because of deficit rains in the growing states. Thanks to increased arrival of new crop from these two states, the wholesale prices in Delhi markets have declined by 3-5 per kg to Rs.53 on Tuesday, Azadpur Agricultural Produce Marketing Committee (APMC) member Rajendra Sharma said. The arrival of early kharif crop of onion in Karnataka and Andhra Pradesh has picked up momentum, which would help improve supply across the country till harvesting of new crop begins in Maharasthra, the country's largest onion growing state, from October onwards.    

August 25, 2015 | 5:51pm IST.