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Onion prices fall on warning to hoarders

MEP increase, arrival of new season crop also support the move

Dilip Kumar Jha  |  Mumbai 

prices, the primary factor behind India’s headline touching a six-week high a few days ago, softened, led by a 20 per cent fall in major mandis in The price fall followed the government's stern warning that it would initiate ‘raids’ on hoarding. The Centre’s decision to raise the (MEP) 38 per cent and arrival of the new crop aided the fall.

It is expected in retail would react to the price fall soon. fell 17.3 per cent in Lasalgaon, Asia's largest spot selling mandi. At Pimpalgaon, plunged 22.7 per cent.

On Thursday, the government had convened a meeting of Agricultural Produce Marketing Committee secretaries in Nashik and warned the government would carry out raids on to unearth hidden stocks. “The price decline after the government's threat shows traders were hoarding the commodity to create artificial shortage and keep high,” said a Nashik-based exporter.

R P Gupta, director, National Horticulture Research & Development Foundation (NHRDF), said, “The actual impact on other would be seen in a day or two.”

Harvesting of the kharif crop started in and the first lot of 1,000 tonnes arrived in the in Ahmednagar and adjoining areas. The new crop was quoted at Rs 24-25 a kg, about 35 per cent lower than the of the previous crop. Pune received about 200 tonnes of the new crop, quoted at Rs 35 a kg. NHRDF data show arrivals in Pune stood at 1,037 tonnes on Friday, against 477 tonnes on Thursday. As the new crop from Karnataka has also started arriving in major mandis, the supply pressure on has eased. Therefore, would be lower from here, Gupta said.

On Thursday, the Centre had raised the MEP for to $900 a tonne from $650 a tonne to discourage exports. exports fell 81 per cent year-on-year to 29,247 tonnes in August, after the government imposed curbs on exports. India, the second-largest producer of onions in the world after China, is estimated to have harvested 16.6 million tonnes of the commodity last year. In 2012, the total realisation from exports of 0.18 million tonnes of onions stood at Rs 2,294 crore.

To meet the high demand during the festive season, Food Minister K V Thomas had decided its import onions from Egypt, Pakistan, China, etc.

On a free fall (Rs /qtl)  
Markets Sep-19 Sep-20 Change (%)
Bangalore 4,000 3,800 (-)5.00
Bhuvaneshwar 4,700 4,600 (-)2.13
Delhi 5,575 5,300 (-)4.93
Hyderabad 3,300 3,000 (-)9.09
Jaipur 5,500 5,050 (-)8.18
Jalgaon 4,200 3,500 (-)16.67
Kolkata 5,000 4,500 (-)10.00
Lasalgaon 5,200 4,300 (-)17.31
Malegaon 5,050 4,300 (-)14.85
Mumbai 5,600 5,400 (-)3.57
Pimpalgaon 5,500 4,250 (-)22.73

First Published: Sat, September 21 2013. 00:10 IST
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