One reason why onion prices surged last week was lack of rains in growing areas of Maharashtra and Gujarat. Currently, the modal price of onion is ruling at Rs 775-800 a quintal against Rs 650 last year.
If the market senses some uneasiness with kharif onion crop, what is the ground reality?
“There has been no rain in growing areas. This has delayed sowing,” says Dr R.P. Gupta, Director of National Horticultural Research Foundation.
“The onion-growing areas are rain-fed. Farmers need to prepare their field. Lack of rains is hurting,” says Mr Rupesh Jaju, Director of United Pacific Agro Ltd in Nashik.
Onion is a kharif and rabi crop. The harvest of rabi onion ends by May and kharif onion arrives sometime at the end of September. Therefore, between June and September, onion prices tend to be high. . Since kharif onion arrives after a three-month gap in the market, it plays a very significant part in keeping a leash on prices.
“Some farmers have sown onion in areas that have received rains. But, there is still concern,” says Mr Jaju.
Lack of rain in the Nashik region is a reason to worry. This is because Nashik and Ahmednagar districts in Maharashtra make up 40-45 per cent of the country's onion production. Rainfall deficiency in the region is over 40 per cent, according to India Meteorological Department.
But, the area under onion cultivation could be the same as last year.
“We expect a normal acreage this year,” says Dr Gupta.
“If we get good rain, area will be normal. But if monsoon plays truant, then there could be problem,” says Mr Jaju.
But Dr Gupta doesn't see any problem of a lower kharif crop. “We have had a good rabi harvest. Farmers are holding back the produce and it will help in prolonging arrivals,” he says.