Onion prices likely to stay firm despite export curbs, say traders

Despite the export ban, onion prices are expected to stay firm at the current levels, say traders from the onion growing states. Along with strong demand and concerns about supplies, the decision of the central government to purchase 2 lakh tonnes of onions at over ₹ 24/kg will provide another boost for the onion prices to stay strong, they said.

National Agricultural Cooperative Marketing Federation of India (Nafed) and National Cooperative Consumers' Federation of India (NCCF) have started buying onions at ₹24.10/kg in Maharashtra from Tuesday as farmers resorted to protests over slapping of export duty on onions.

"There has been no major change or decline in onion prices anywhere in the state since the export duty came into effect. The demand for onions is still strong everywhere. Now that Nafed has started buying onions at ₹24/kg, farmers would like to hold onions expecting to get higher rates," said Nandkumar Shikre, chairman, Onion Traders Association, Ahmednagar.