Onion prices may come down soon
Commodity Online NEW DELHI: Housewives shedding tears over the onion prices may get some reprieve around Diwali with the market analysts predicting a fall in prices as the kharif crop started arriving at mandis across the country.
Moreover, traders will also benefit as the minimum export price (MEP) of onion, which is in the range of $445-565 a tonne at present, will be revised after Diwali.
The arrival of onion in Bangalore surged to 14.65 lakh tonnes in October 2007 from 6.95 lakh tonnes in the previous month.
The supply in Hubli (Karnataka) also increased to 3.10 lakh tonnes from 33,520 tonnes.
Onion arrivals in Pimpalgaon, Lasalgaon and Nasik mandis were, not up to the mark till now. The arrival, however, increased at Solapur to 1.47 lakh tonnes from 73,188 tonnes.
In Delhi, which is a major onion consumption centre in the country, the supply increased marginally to 2.43 lakh tonnes in October, as compared with 2.31 lakh tonnes in September 2007.
Traders said the arrival of Kharif onion will be in full swing after Diwali.
According to National Agricultural Cooperative Marketing Federation of India (Nafed) officials, the onion MEP will be revised after Diwali.
Central government official said there is likely to be a downward revision in onion export prices as the decision to hike the prices was taken when the domestic prices were much higher than the current level.
Nafed had decided not to tinker with the MEP during the last week of October in view of the festival season.
Although onion retail prices are still in the range of Rs 20-24 a kg, traders said rates would drop after Diwali.
Besides Nafed, there are 12 other agencies notified by the government to export onion. These agencies decide the MEP of onion every month. Last month, the MEP was raised by $50 a tonne to $445-565 a tonne, depending on the export destinations.
The government also tightened norms by making export licences mandatory for onion shipments, while retaining the earlier practice of export through no objection certificates (NoC) issued by Nafed.
The price for export of onion to Pakistan is $445 a tonne while for Greece it is $565 a tonne. Singapore gets Indian onions at $495, Malaysia $470, Sri Lanka $480, Bangladesh and UAE $500.
India’s onion exports during April-September 2007 came down 37 per cent at 3.82 lakh tonnes, as against 6.05 lakh tonnes in the corresponding period last year.
Onion arrivals in many places have gone up as the Kharif season harvesting is in full swing.
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