Onion prices soar on reduced arrivals

On Sept 17, onion prices had touched an all-time high of Rs 5,501 a quintal. On Oct 10, these fell to Rs 2,750 a quintal

Onion prices have surged to Rs 5,229 a quintal at wholesale markets in Maharashtra. Within a fortnight, the prices have risen by about Rs 2,500 a quintal.

On September 17, prices had touched an all-time-high of Rs 5,501 a quintal. On October 10, these fell to Rs 2,750 a quintal.

Sources said farmers weren’t bringing onions to the markets, adding arrivals had fallen substantially, despite the peak season.

“The arrivals are lower by more than 50 per cent, against a normal year. Farmers are not bringing stocks in anticipation of higher prices,” said a trader from Ahmedabad, where prices were being quoted at Rs 5,500-6,000 a quintal in the wholesale market.

At Lasalgaon, India’s largest onion market, arrivals stood at about 1,000 quintals on Friday, against 20,000 quintals a year earlier. Insiders said intermittent rains in growing regions had hit onion harvest and adversely affected the supply chain.

“Through the past few months, Maharashtra, Madhya Pradesh and Karnataka have recorded intermittent rains. This has affected the harvest and transportation. Therefore, we are seeing low arrivals in the market,” said R P Gupta, director, National Horticultural Research and Development Foundation.

“Onion prices had fallen in recent days. Suddenly, these have surged. But that is for a limited period. We will see prices falling from next week,” he added.

The high prices have led to concern for the government. In September, Wholesale Price Index-based food inflation stood at 18.4 per cent. With onion prices rising again, it is feared inflation would surge. Sources say fresh arrivals have started in various markets, including Delhi and Mumbai.