India: Limited export buying amid arrivals drags onion

Heavy arrivals, particularly of late kharif crop, continued to pound onion in markets around growing regions in Maharashtra and Gujarat this week. “Arrivals have been huge in the last 3-4 days of the late kharif. Some 34,000 tonnes have arrived and of this, 10,000 tonnes flooded the Solapur agricultural produce marketing committee (APMC) yard,” said Mr Rupesh Jaju, Director of Nashik-based United Pacific Agro Pvt Ltd. Onion prices ruled between Rs 300 and Rs 550 a quintal. “Most trades took place around Rs 350-400,” said Mr Jaju.

In Pune APMC, arrivals have averaged over 1,500 tonnes since Tuesday, leading to the modal price or the rate at which most trades took place dropping to Rs 525 a quintal. Last week, prices ruled at Rs 600. Export demand is limited but even if it increases, it is unlikely to have much effect on prices. “There is not much scope for price rice at least in the next fortnight in view of huge arrivals,” said Mr Jaju. However, if the Centre cuts the minimum export price from $250 a tonne fixed on November 28, there could be some change in situation.

Export demand is lower since prices of competing nations, such as China, are lower than $200 a tonne. But exporters expect buyers from Malaysia and Sri Lanka to buy Indian onions that have their own market abroad on grounds of quality. “Sri Lanka could come in the market next month,” said a trading source.

Source: thehindubusinessline.com