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Onion prices surged to a two-year high on Friday in markets around growing areas of Maharashtra and Gujarat on lower arrivals. However, officials said that the rise was due to manipulation by traders, particularly in Nashik.
At Lasalgaon Agriculture Produce Marketing Committee (APMC) yard, the modal price or the rate at which most trades took place increased to Rs 1,400 a quintal. Such a trend was last seen in the first week of February 2011.
“Arrivals may look to be low compared with last week but if you look at the trend in the previous years they are at a par,” said a trading source. “There seems to be some shortage or at least arrivals are low against normal demand. Therefore, prices have tended to rise in the last two days,” said Madan Prakash, Director of Chennai-based Rajathi Group of Companies that exports agricultural products. “Some traders seem to be playing games at Nashik. Otherwise, I don’t see any valid reason for prices to rise,” said R.P. Gupta, Director of National Horticultural Research and Development Foundation. His charge is support by the fact that arrivals during the same period last year were around these levels at Lasalgaon but prices were just one-third of what they are now. On Thursday, arrivals at Lasalgaon were 1,608 tonnes with quality onions fetching Rs 1,471 a quintal and most trades taking place at Rs 1,390. During the same time last year, arrivals were 1,181 tonnes with the maximum price being Rs 479 and most trades taking place at Rs 401. “Demand is normal now that Pongal and Sankaranti are over. We were expecting prices to drop but that has not happened,” said Prakash. “The quality this time is good and though the area under kharif onion was lower, the yield made up for that loss,” said Gupta.
Prakash said that prices could begin to taper off in a week’s time since the new crop has begun arriving in Gujarat. “Now, the onion that is arriving has high moisture,” he said. Export demand is also good despite Pakistan offering its produce at a competitive price. “Malaysia and Sri Lanka are buying Indian onions offering a premium,” Prakash said.
subramani.mancombu@thehindu.co.in
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