Onion prices fell to a 10-month low as heavy arrivals continued to play spoilsport.
“The sentiment in the market is negative. Arrivals are huge in Maharashtra,” said Mr Rupesh Jaju, Director of Nashik-based United Pacific Agro Pvt Ltd.
“Arrivals are heavy in other growing States, such as Gujarat and Karnataka, too,” said Dr R.P. Gupta, Director of Nashik-based National Horticultural Research and Development Foundation.
According to Mr Jaju, arrivals in Maharashtra were around 38,000 tonnes in the last three days. “In the last two days, arrivals in Solapur were 7,500 tonnes,” said Mr Jaju.
“Arrivals in Gujarat is lower but there are no takers for onion,” said Mr Jamanbhai Patel, a trader in Gondal Agricultural Marketing Produce Marketing Committee (APMC) yard.
“One reason for the heavy arrivals is that kharif sowing was delayed due to dry weather and now the crop is coming along with late kharif,” said Dr R.P. Gupta.
“Arrivals are flooding markets since the kharif onion cannot be stored like the rabi. No one wants to hold back the produce,” said Mr Jaju.
“In fact, the huge arrivals have resulted in lack of storage. We are finding it a problem to find a proper storage,” he said.
Most of the trades are done at around Rs 395 a quintal, according to Mr Jaju.
In Lasalgaon APMC yard, the modal price or the rate at which most trades took place dropped to Rs 380 a quintal with arrivals touching 2,000 tonnes on Friday.
At Gondal APMC, onion prices dropped to Rs 90-95 for a maund of 20 kg.
During the same time last year, prices were ruling above Rs 3,000 a quintal.
Export is on as usual to the Gulf, South-East Asia and the Far East. Huge arrivals are the reason why prices are not gaining despite export demand.
The Centre has been urged to lower the minimum export price (MEP) of onion from the $250 a tonne fixed on November 28.
“If the MEP is lowered, prices could tend to gain,” said a trading source.
“A question mark hangs over the near future of onion prices. As long as arrivals are huge, prices will remain subdued,” said Mr Jaju.