Commodity Online
MUMBAI: India’s National Commodity and Derivative Exchange, NCDEX, may drop its plan to start futures trading for onion.
According to an official at the exchange, couple of reasons including difficulty to store the commodity and its highly politicized status in the country have contributed to the decision.
He however said, NCDEX is set to launch spot trading in coffee and maize.
Onion prices, which had shot up sharply a few months ago, have now tumbled on mounting arrivals and subdued export demand and are expected to remain weak for the next few months, traders said.
Wholesale price in the country's largest onion trading hub, Lasalgaon in Maharashtra, fell to its lowest level at Rs 365 per 100 kg, from a peak of Rs 1,951 on October 1.
Onion prices slipped following the Government's announcement of an action plan to check rising prices and increase onion supply, said the commission agents.
Onion prices are likely to drop as output is projected to go up by 14 per cent in 2007-08, with the area under onion crop likely to increase in the ongoing kharif season.
