Higher demand from South India kept onion prices firm this week in markets around growing areas in Maharashtra and Gujarat.

A higher bid by South India buyers resulted in increased arrivals on Friday, according to Mr Rupesh Jaju, Director of Nashik-based United Pacific Agro Pvt Ltd that exports onion.

“Prices are firm as only quality onions are arriving in the market. All these have been kept in the open and therefore, growers are brining them,” said Mr Madan Prakash, Director of Chennai-based Rajathi Group of companies that exports agricultural produce.

Onions are ruling at Rs 650-700 a quintal on the higher side and Rs 350 on the lower side. The average price is Rs 550-600, said Mr Jaju.

At the Lasalgaon Agricultural Produce Marketing Committee (APMC) yard, Asia’s biggest onion market on Friday, the modal price or the rate at which most trades took place was Rs 480 a quintal with arrivals topping 2,100 tonnes. Prices were Rs 20 lower from Thursday in view of the higher arrivals.

In the last three days, arrivals in Maharashtra were 32,000 tonnes with the inflow increased in Ahmednagar district.

“Arrivals are likely to be higher next week in view of the demand from the South. This could lead to Rs 50-60 a quintal correction in prices,” said Mr Jaju. “The drop could, however, be temporary only,” he said.

“Farmers are holding back their produce in their storages. From hereon, we can expect prices to edge higher,” said Mr Prakash.

On the export front, there is a fair demand from Oman, Dubai and Qatar in the Gulf, Sri Lanka and Malaysia. “We are getting enquiries from Indonesia too,” said Mr Jaju.

>mrsubramani@thehindu.co.in

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