According to Tamil Nadu Agricultural University (TNAU), small onion or shallot prices are unlikely to increase this year, as production has been normal and Sri Lanka, a former export destination, has begun to cultivate the vegetable itself.
TNAU's market intelligence department reports that the farmgate price of small onions will hover around Rs 21 to Rs 23 per kg in May and June.
Experts do not see the possibility of the prices going up because a majority of the small onion producing region received good rainfall.
"Since there was good rain, the production of shallots is expected to be high and arrivals from major growing centres like Dindigul, Tirupur, Perambalur and Theni have already begun," said an official.
The TNAU statement said that traders also indicated that there was a fall in export demand. "It is attributed to the cultivation of small onion in Sri Lanka," said the statement. Major export destinations for the vegetable are Sri Lanka, Singapore, Malaysia and United Arab Emirates.
Most of the production of small onion is domestically consumed and the arrivals from Karnataka and Andhra Pradesh facilitate domestic demand as well as export demand.
(1 Indian Rupee=0.015USD)
Source: timesofindia.indiatimes.com
