India: Onion prices soften, to stay firm till November

After staying high for the past two weeks following reports of crop loss owing to recent floods in Andhra Pradesh and Karnataka, onion prices have moderated marginally. The fall in prices is attributed to arrival of onion in mandis of Andhra Pradesh and Karnataka during the last few days.

However, prices are expected to remain high till the new crop from Maharashtra arrives in the market only by the end of November.

Before closing for Diwali, the model wholesale price in Nasik, the hub of onion trade in the country, was Rs 1,200 per quintal as against Rs 650 per quintal during the last week of September. According to official analysis, prices have increased more than 83% in Delhi this month compared to the year-ago period.

With the reports of recent floods damaging major parts of standing onion crops in Andhra Pradesh and Karnataka, supplies were hit resulting in escalation of prices across the country. Last week, prices of onion doubled owing to supply constraints. Retail prices in Delhi went up from Rs 14-15 per kg to Rs 30-35 per kg. However, prices have moderated in the retail market of the capital since last week. The commodity is currently selling at Rs 25- Rs 28 per kg.

According to latest crop prospect report of the National Horticulture Research and Development Foundation (NHRDF), besides a few places in Kunoor and Mahubnagar districts of Andhra Pradesh and Bijapur, Hubli and Raichur districts of Karnataka, most of the kharif onion crops have not been damaged due to floods. “There has not been much impact of flood in many onion growing parts of Andhra Pradesh and Karnataka,” the NHRDF said in its report.

“Although there would not any shortage of onion in the country, prices would remain firm till the new crop arrives next month,” CB Holkar, president, NHRDF, told FE.

“The kharif crop in Rajasthan and Haryana is good. In Maharashtra, continued but scanty rain will help in better productivity of kharif and late kharif crop,” the NHRDF report has observed.

According to Agmark, the wholesale price of onion in Delhi was Rs 1,550 per quintal on Thursday against Rs 1,612 in last week.

The current demand for onion in the country is met through 1 million tonne of stocks. According to traders, at present, heavy arrivals are being witnessed in Maharashtra markets and in the Bangalore market of Karnataka. In Delhi market, around 40-50% arrivals of stored onions...


Source: financialexpress.com

Publication date: 10/19/2009

respond to this article  email this article    print

Receive the daily newsletter in your email for free | Click here

 

<< back | www.freshplaza.com