Onion prices on a downward trail

Prices fall to Rs 30-40 a kg in retail as wholesale prices cool off

With arrivals from major growing regions increasing, onion prices have recorded a steady decline. In wholesale markets, prices have fallen to Rs 23-25 a kg, while prices in retail markets were Rs 30-40 a kg.

“We are seeing fresh arrivals from Saurashtra, Madhya Pradesh and Maharashtra. Arrivals will continue to rise till the next fortnight; so, we see a further fall,” said an official at Ahmedabad’s Agricultural Produce Market Committee, Sardar Patel Market.

In the beginning of this week, arrivals were 11,000-14,000 quintals.

During this, wholesale prices have fallen from Rs 3,201 to Rs 2,350 a quintal at the Lasalgaon market. This week, prices fell to a low of Rs 900 a quintal in the Lasalgaon market.

“In the retail market, prices are Rs 30-40 a kg; wholesale prices have fallen,” said a Nashik-based trader. In Delhi, wholesale prices fell to Rs 1,100 a quintal, with arrivals at 15,500 quintals on Tuesday. Experts feel once wholesale prices stabilise at low levels, retail prices will fall below Rs 20 a kg.

Earlier, prices had surged to a record of Rs 6,000 a quintal in the Lasalgaon market.

In the retail market, prices had hit Rs 100 a kg in a few urban pockets. The government had to intervene: The National Agricultural Cooperative Marketing Federation of India had issued tenders to import at the end of August. However, even after imports of 400 tonnes, prices didn’t fall.

On the improvement in the situation, R P Gupta, director, National Horticultural Research and Development Foundation, had said, “Arrivals have increased and we see more supply from the growing regions of Gujarat, Maharashtra, Madhya Pradesh and Rajasthan. This will bring down prices in wholesale markets below Rs 20 a kg.”