End of onion crisis in sight

Market arrivals surge and prices start dropping, with the pace of decline expected to pick up

The signs are visible of the onion crisis getting resolved. New arrivals have increased at key markets, pushing down the price, which had become a matter of worry for not only consumers but governments.

Market sources reveal fresh arrivals from Rajasthan, Gujarat, Madhya Pradesh and Maharashtra have started hitting mandis. Prices have fallen to one of the lowest levels since August. “This will bring down prices at the wholesale markets below Rs 20 a kg. Now on, we will see  prices falling,” said R P Gupta, director, National Horticultural Research and Development Foundation (NHRDF).

In the retail market, prices were Rs 50-70 a kg in Ahmedabad and Mumbai. A few days before Diwali, these were Rs 70-90 in many places. With whole sale prices expected to come down further, traders say retail prices could fall to around Rs 40 a kg or lower. “Onions from Saurashtra and Maharashtra have started coming in the market. While demand is stable, high arrivals have pushed down prices. We see further downside in prices,” said a trader at Ahmedabad’s Chimanbhai Patel APMC.

At Lasalgaon (near Nashik), the country’s largest onion market, daily arrivals have increased from 400 quintals at the beginning of the month to 8,100 quintals. Prices were Rs 2,950 a quintal on Wednesday; they were Rs 4,200 a quintal on November 6.  The Lasalgaon market had even seen a high of Rs 6,000 a quintal. In the retail market, prices hit Rs 100 a kg at some urban pockets.

“Arrivals from Karnataka and Andhra Pradesh will start reducing as the kharif (harvest) gets exhausted there. But we see increased arrivals from other parts of the country. This will keep prices in check,” said Gupta.  The National Agricultural Cooperative Marketing Federation of India  had issued tenders to import onions at end-August. However, even after around 400 tonnes were brought in, prices did not begin cooling.