Onion price rises 65% this month as rain interrupts harvest

Steep decline in arrivals across major mandis leads to higher prices

Onion prices have jumped since December 1, due to supply disruption. The latest spells of unseasonal rain have left farm areas with deep mud in the fields, resulting in farmers halting the harvesting of mature standing crop.

Data compiled by the National Horticultural Research and Development Foundation (NHRDF) showed the price in Mumbai at Rs 2,100 a quintal (qtl) on Thursday, against Rs 1,270 a qtl on December 1, a 65 per cent rise. Total arrival in the city was 770 tonnes on Thursday, against 1,505 tonnes on December 1.

“Rising prices can be attributed to steep decline in arrivals across major mandis, as the unseasonal rain damaged standing crops and delayed harvesting of matured ones. There has been no export demand as well,” said Ajit Shah, director, Agricultural Produce Market Committee, Pimpalgaon, one of the Asia’s largest onion mandis, close to Nashik.

Supply of new-season crop started early December, as farmers commenced harvesting of the early variety of kharif crops.

These had been sown with a delay of over a month, due to the late commencement of monsoon rain. The harvesting, as mentioned earlier, stopped with the deep mud in the fields. The best quality onion does not carry any mud, due to fear of spoilage.

With a 16 per cent fall in arrivals to 1,025 tonnes on December 18 as against 1,234 tonnes on December 1, the price was quoted at Rs 1,700 a qtl at the Pimpalgaon mandi on Thursday, a rise of around 30 per cent.

At the benchmark Lasalgaon market, in the same district, the price was quoted at Rs 1,750 a qtl on Thursday as against Rs 1,375 a quintal on December 1.

“This is a temporary phenomenon. The price will soften in a week, with gradual reduction in field moisture and commencement of harvesting. There is no shortage of onion this season,” said R P Gupta, director of NHRDF.

Some, however, worry that the soil moisture and deep mud in the field might spoil unmatured standing crop.

The National Horticulture Board, in its second advance estimate, projected output at 19.3 million tonnes during crop year 2013-14, a 15 per cent rise from 16.8 mt in crop year 2012-13.