Though stabilised, onion prices to remain high till October

PUNE: Though onion prices have stabilised for over a fortnight, they will not come down till October. Retail prices of the bulb are still ruling between Rs 60/kg to Rs 80/kg even in biggest growing state, Maharashtra.

Sustained import of onions from Afganistan and Egypt has helped to keep wholesale onion prices stable, though high, at Rs 55/kg for over a fortnight. The better normal kharif crop in Rajasthan, Madhya Pradesh and Gujarat and life saving spell of recent rains in Maharashtra, will increase availability of local onions from next month, consumers will have to pay the uncomfortably high price till October.

This year, onion prices broke their earlier record set in September 2013, and reached a new high of Rs 63/kg in August at the Lasalgaon APMC in Nashik district of Maharashtra. Wholesale prices rose by 80% in August.

Mumbai is getting about 50 to 60 containers of Egyptian onion every week. Its selling price is less than the local onion by Rs 10/kg. Similarly, Delhi is getting Afghan onion via Pakistan.



"About 2000 tonne onions are being imported every week in Mumbai," said onion exporter Danish Shah.

Though the overall kharif onion crop in Maharashtra is likely to be less due to the drought in the state, area under onion is more than normal in Rajasthan, Madhya Pradesh and Gujarat and areas around Haryana. "Rajasthan onion will come to markets from October, followed by MP and Gujarat. This will help compensate any fall in production in Maharashtra," said RP Gupta, director, National Horticulture Research and Development Foundation (NHRDF).

"The recent rainfall in Maharashtra has improved the crop prospect of Nashik onion. It will be available in good quantity from November onward," said Ajit Shah, president, Onion Exporters Association.

Neighbouring Pakistan is also likely to get a good harvest of its good quality 'fulkara' crop, which will be available from September 25. This crop will also help keep the prices under control. "If Indian prices remain high enough, even traders from Maharashtra may import the Pakistan onion via sea," said a trade source.

Traders expect the prices to go up slightly around Bakri Eid as transportation becomes a problem due to truck drivers taking holiday. "But this will be a small hike of about Rs 5/kg, which will last for just a few days," said a trader, who did not wish to identified.

Meanwhile, trade sources informed that the government efforts to import onion through MMTC, could not get good response.