Onion prices continued to head south as farmers kept clearing old stocks, while the quality of new arrivals was inferior.
“Arrivals in markets around growing centres in Maharashtra are huge. In the last three days, 25,000 tonnes have arrived in various markets,” said Mr Rupesh Jaju, Director of Nashik-based United Pacific Agro Pvt Ltd that exports onion.
“Even local demand is subdued, while export demand has slackened,” said Mr Madan Prakash, Director of Chennai-based Rajathi Group of companies that ships out agricultural produce.
In Solapur Agricultural Produce Marketing Committee (APMC) yard in Maharashtra, over 7,000 tonnes of onions have arrived since Thursday. In Lasalgaon APMC, arrivals were around 5,000 tonnes.
“Due to heavy arrivals prices are ranging between Rs 100 and Rs 600 a quintal, based on quality,” said Mr Jaju.
Most of the trades were done in the Rs 400-450 range.
On the other hand, exports are extremely low since the shelf life of the rabi onion is almost over, while quality of this year's kharif arrivals is not up to mark.
“There is some buying from Sri Lanka and Dubai,” said Mr Jaju.
“There are enquiries from Malaysia but the unstable currency situation has made buyers abroad wary,” said Mr Prakash.
“The current currency scenario is in favour of exports but we are not able to take advantage of the situation due to quality issues with arrivals,” said Mr Jaju. “Prices of Indian onions are far lower than other competing nations,” he said.
“Ultimately, onion is a food item and buyers will come back sooner than later,” said Mr Prakash.
The current price trend could extend up to the New Year after which better quality arrivals of the kharif onion could lift the market sentiment, said Mr Jaju.