Wholesale costs of onion have crashed by almost 50% in important markets across the nation, from Rs 4,000 per quintal to Rs 2,000 per quintal, in the final 10 days as the late kharif crop has began hitting the markets. Farmers and traders apprehend that costs are probably to drop additional with the arrivals of the summer time crop by the second week of March.
On Thursday, modal costs at Lasalgaon, the country’s biggest wholesale market place for the bulb, dropped to Rs 2,000 per quintal. Prices have been about Rs 4,000 per quintal just a week ago, Suvarna Jagtap, chairperson, Lasalgaon Agriculture Produce Market Committee, mentioned.
PK Gupta, acting director, National Horticultural Research and Development Foundation (NHRDF), attributed the fall in costs to growing arrivals. The late kharif crop arrivals have begun in most markets, he mentioned. Once the summer time crop arrives in the market place, costs could fall additional.
Jagtap agreed and pointed out that the regional crop has begun arriving in West Bengal, Madhya Pradesh, Andhra Pradesh and Karnataka. “Arrivals have doubled in all these markets in the last 10 days. Earlier, there were no supplies from these states, and therefore, onion from Nashik was in high demand with average prices touching Rs 4,000 per quintal. Now the supply is more than the demand and prices are falling,” she mentioned.
Jagtap mentioned the late kharif onion can not be stored and as soon as the rabi onion arrives, supplies could boost additional. Wholesale costs could drop to Rs 1,500 per quintal quickly, she feared.
NHRDF’s Gupta mentioned the rabi onion was anticipated to arrive as early as March 15. The arrivals may possibly be larger as the region beneath cultivation has elevated. At present, exports from India are not competitive and as soon as the summer time crop arrives, exports will also choose up, he mentioned.
Onion costs surged final month just after unseasonal rains lashed the increasing components of Maharashtra, raising issues more than the crop prospects. Prices in other increasing states such as Gujarat and Maharashtra also elevated.