Lower arrivals amid normal demand lifted onion prices this week in markets closer to producing centres in Maharashtra.

“It is normal for onion prices to rise at this time of the year, especially when monsoon gets active,” said Mr Madan Prakash, Director of Rajathi Group of Companies that exports farm produce including onion.

At Lasalgaon in Maharashtra's Nashik district, the modal price or rate at which most trades took place increased to over Rs 700 a quintal this week. Last week, the modal price averaged Rs 650.

Though arrivals in Lasalgaon topped 1,000 tonnes on Monday, in general they were below 800 tonnes for most part of the week.

“Very few farmers are bringing stocks to the market due to rain. They would prefer to wait as they have the wherewithal to hold back their produce,” said a trading source.

“Demand for onions in the domestic market is normal, particularly in the South. Exports are taking place and the $200 a tonne minimum support price is in tune with the market trend,” said Mr Prakash.

The trade sees prices around this level for a couple of weeks.

“If monsoon brings in heavy rain and floods, onion prices could tend to rise,” said Mr Prakash.

Related Topics