Onion prices continued to rise in various markets near growing centres in Maharashtra and Gujarat on low arrivals and demand from the Far East.

Prices at Lasalgaon Agricultural Produce Marketing Committee (APMC) yard, Asia's biggest onion market, in Maharashtra increased to as high as Rs 1,050 a quintal on Wednesday before settling at Rs 950 on Friday. On November 21, when the market worked last before Diwali, the modal price or the rate at which most trades took place was Rs 815.

At Pune APMC, the modal price increased to Rs 900 on Friday from Rs 750 on November 25.

“Prices are higher because arrivals are lower. Demand from countries, such as Malaysia and Indonesia, has increased,” said Mr Rupesh Jaju, Director of Nashik-based United Pacific Agro Pvt Ltd that exports onion.

“Arrivals are poor because the stored rabi onions are near the end of their shelf life. There is no guarantee that the crop will last further,” said Mr Jaju. “It is proving to be a tough job to find onions for export,” he said.

“New crop has begun to arrive in remote centres of Maharashtra but they are either wet or need to have grown more,” said Mr Madan Prakash, Director at Chennai-based Rajathi Group of companies that exports agri-produce.

“But for lack of rains, the kharif crop would have been good,” said Mr Prakash.

In the last three days, 18,500 tonnes of onions arrived in various markets of Maharashtra.

“Enquiries from the Far East were good last week since Pakistan's crop is coming to an end,” Mr Prakash said.

“Pakistan is not able to supply and the shortage has made Far-Eastern countries to turn to India,” said Mr Jaju, adding that demand from the Gulf was constant despite a higher minimum export price (MEP) of $475 a tonne fixed by the Centre.

Prices are likely to strengthen further mainly due to short supply. “With the MEP being so high, exports will surely not be a reason for rise in prices,” said a trading source.

Related Topics