Rising imports push onion, pulses, cotton prices to record low levels

Increasing imports from multiple countries are driving down the prices of several daily essentials, including onions, arhar, moong, cotton, and soyabean, to record low levels.

 

According to a report by The Economic Times, onions, arhar, and moong are trading at their lowest levels in three years, while yellow peas are at a six-year low. At the benchmark Lasalgaon market in Nashik, onion prices are currently at their lowest levels in three years, the report said. Prices of soyabean and cotton have also fallen to their lowest in two years. 

 

These record-low levels come against a surge in imports of pulses and cooking oils, along with reduced onion exports. A large number of countries, including Australia, Africa, Myanmar, Brazil, and Bangladesh, have stepped up supplies of pulses and other produce to the Indian market.

Rising imports from other nations

• Australia: Produced a bumper crop of chana last year for India, and this year has harvested a record crop of lentils
• Africa: Harvested significant quantities of tur (arhar) for Indian buyers
• Myanmar: Reported a large urad crop that was sent to India
• Brazil: Recently began cultivating urad for Indian consumers and is estimated to have produced more than 80,000 tonnes
• Bangladesh: Traditionally, India’s largest buyer of onions. However, exports to Bangladesh have been negligible over the last six months.

Government releasing stocks

Meanwhile, government agencies such as the National Co-operative Agricultural Marketing Federation (Nafed) and the National Cooperative Consumers Federation (NCCF), which had earlier procured onions to stabilise prices, have now begun releasing buffer stocks into the market to meet rising festive season demand, further putting pressure on the prices.