Onion prices recovered this week as demand, especially from buyers abroad, rebounded after the Centre lowered the minimum export price to $250 a tonne.
“Demand for onion has stabilised and exports have picked up. Buyers from the Gulf, especially Dubai, and South-East Asia are purchasing,” said Mr Rupesh Jaju, Director of Nashik-based United Pacific Agro Pvt Ltd.
The modal price or the rate at which most trades took place that was hovering at Rs 740 a quintal improved this week to as high as Rs 900 during the middle of the week before settling at Rs 750 on Friday at the Lasalgaon Agricultural Produce Marketing Committee yard, Asia's largest, in Maharashtra.
“Prices are ruling anywhere between Rs 800 and Rs 1,200 a quintal, depending on quality,” said Mr Jaju.
Arrivals are ample, particularly in Nashik, Ahmednagar and Pune districts of Maharashtra. “At least 7,000 tonnes have arrived in these three districts in the last three days,” said Mr Jaju.
However, the problem with arrivals currently is quality. “Though the quality of arrivals is not that satisfactory, buyers, including importers, seem to have no choice,” said Mr Jaju.
This is because Pakistan is not exporting onions and buyers have no option. In addition, there are others who look out specifically for Indian onions.
With demand for onion stabilising, prices are expected to remain at current levels, according to trading sources.