New Delhi: The inflation in wholesale and retail onion prices in major wholesale markets across the country is likely to end as farmers are now dumping markets with new onion crop, while the stock of old early Kharif crop is yet to be cleared.
Farmers are flooding the markets with large amounts of onions every day as the quality of the commodity in the storage has been deteriorating post-monsoon, leading to a crash in wholesale prices.
Wholesale onion rate has declined by 65 per cent in the last five weeks at the benchmark Lasalgaon wholesale market in Maharashtra. The average wholesale rate of old onion from storage has decreased to Rs 18 per kg at the Lasalgaon market as on 9 December from Rs 54 per kg on 10 November.
Similarly, in another major wholesale market at Belagavi in Karnataka, the onion was trading at the wholesale rate of Rs 20-38 per kg on 10 December as compared to Rs 70 per kg on the corresponding date last month.
Radhey Shyam Singh, a wholesale trader in the Manasa mandi in Madhya Pradesh, told ThePrint: “The weather is getting cold with each passing day. The current temperature is around 12-14 degree Celsius. Due to this, the sprouting is getting out of control in onions, and more the sprout, less the rate of the commodity.”
“Further, the daily new arrival of onions up to 8,000 metric tonnes (MT) from Maharasthra, Madhya Pradesh and Alwar (Rajasthan) is suppressing the prices in the market as old onion stock of 4,500 MT is still lying in the market and deteriorating rapidly. Also, the traders who stocked onions expecting shortage in the market are releasing huge quantities now,” added Singh.
Experts, however, said the wholesale price crash will take a while to cool off the retail prices in cities across India.
Also read: This is how India can make sure onions are available throughout the year and at good price
Prices likely to fall further
Nana Saheb Patil, director of the National Agricultural Cooperative Marketing Federation of India (NAFED) in Maharashtra, told ThePrint: “Prices are likely to further fall to Rs 1,500-Rs 2,000 per 100 kg in the next fortnight in wholesale markets as the shelf life of onion is nearing its end.”
“However, the effect of the wholesale market price reduction will take some time to show in the retail market as traders will release the stock purchased earlier on higher price,” he said.
“There is still a lot of old stock in Nashik, Solapur and Junnar areas, while the government has also imported large quantities of onions, which has further reduced the prices,” added Patil.
Traders, exporters push for lifting export ban
The wholesale price crash of onions has prompted large farmers and traders to demand that the export ban be lifted immediately to avoid a glut when Kharif harvest arrival rises.
Officials from the Agricultural Produce Market Committees (APMCs) from Nashik, along with other stakeholders such as Mahrashtra Horticulture Produce Exporters Association, have approached the central government last week, demanding immediate opening of onion exports.
Deepak Roy, a member of Horticulture Produce Exporters Association, told ThePrint: “During January, the early Kharif which has been delayed will overlap with Kharif arrivals and arrivals will be too heavy. The Kharif crop production is expected to be 150 per cent in comparison to last year due to heavy sowing. This will create a lot of downward pressure on the prices resulting in a glut and prices expected to plummet to below production cost.”
“Keeping the above in mind, our suggestion is that at the appropriate time in the next few weeks, exports should be commenced. It should be done with a requirement of Letter of Credit and Minimum Export Price so that there is no initial sudden spurt in the market and the balance between both domestic market levels and excess supply pressure is maintained,” added Roy.
Also read: Know your onions: Peeling complex layers of a humble, pricey vegetable Mughals popularised
My self Hemraj an Onion farmer it is very difficult to say what will happen in Jan2021 but my predictions are rate will be higher that today’s rate. It will be near by 3000 in holesale market. Bcoz many farmers sold their stock and new Red onion average is too less as compared to normal crop.
Any buddy want to buy onion direct from farmer do contact aherhemraj @gmail.com
It’s too early to lift the Export Ban & stop importing as the retail customers still ending paying up the heavy price in Rs.45 to Rs.60 per kg in Mumbai. Let the fresh stock flood the market and retail prices cool, then Government can lift the Export Ban.
The market is still fluctuating because of traders’ manipulation, though they buy cheap price from the Farmers. Once the fresh stock flooded the market, it binds them to release their stock at the lower price, resulting in the retail market price to cool at the reasonable level. Tx.
Nagesh Rao