Last Updated :
27 December 2007 at 14:30 IST
Onion prices slide after rise in arrivals
Commodity OnlineNASHIK: After the rise, the inevitable fall has come for onion prices.
After reaping rich dividends during the past few months, onion prices started the slide with the increased arrivals.
Another reason for the fall is the drop in export demand.
According to traders in Nashik, arrivals have nearly doubled in last fortnight. Demand isn’t changed that much.
Wholesale price in the country’s largest onion trading hub, Lasalgaon in Maharashtra, fell to its lowest level this year at Rs 373 per 100 kg on Wednesday, from a peak of Rs 1,951 on October 1.
The arrivals will rise further in coming weeks. Prices will remain weak or may fall by another Rs 50 to Rs 100 per 100 kg.
Congestion in the ports was also affecting exports, increasing availability in the domestic market and pulling down prices.
The kharif season onion harvest contains high moisture and reduces its shelf life, forcing farmers to bring their produce to market as early as possible. Farmers and traders felt that prices will remain weak for the next two months.
In mid-2007 onion prices had gone up substantially, which led farmers to cultivate more onion.
Onion production in kharif season is likely to rise 30% to 1.7 million tonnes on increased acreage.
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