Onion prices forecast in range of Rs 800-850 a quintal

The University of Agricultural Sciences (UAS) in Dharwad has come up with plans to help farmers take proper decisions while sowing the seeds for crops the price of which is highly volatile. The ‘Domestic and Export Market Intelligence Cell, Department of Agri-business Management’ in the UAS in a study has predicted that the price of onion in Belgaum may fluctuate in the range of Rs 800-850 per quintal.

“Onion is an important vegetable crop which is often and extensively used in many Indian dishes. At the same time it is the crop which experiences the high volatile prices because of market forces and gambling of traders in marketing of this crop. In this regard, in order to help the farmers to take better sowing decision and to save them from distress sale of the commodity, prices of onion in Belgaum regulated market have been analyzed and prices at harvest have been forecast for Belgaum region by the Domestic and Export Market Intelligence Cell (DEMIC), Department of Agribusiness Management,” said a release from the department of agri business, UAS, Dharwad.

In this study, during the last 20 years, the monthly modal price data of onion from Belgaum regulated market has been collected and analysed using reliable statistical data.

“Other than this, in order to cross-check the forecast prices and also to fine-tune them further, the valuable opinions and suggestions collected from onion traders, agricultural scientists and progressive farmers and were kept in mind while coming to the final conclusive forecast prices. The prices in other major markets for this crop and government policies towards this crop were also taken into consideration which influence the prices in this market. The yield of the crop in Belgaum region is expected to be 200 quintals per hectare.”

The price of onion in August, 2011, was Rs 800 per quintal. But being a volatile crop, the prices can fluctuate.

According to the predictions of the DEMIC, the prices of onion may fall towards Rs 800 and Rs 850 per quintal in October-November which is the peak harvest period of the crop. Bold and uniform-sized, well-dried and clean lots of onion are going to fetch higher prices, the release said.