Onion prices crash 30-40% in 10 days

Onion costs throughout the region, specifically in major agricultural markets close to the developing regions,

Onion costs throughout the region, specifically in major agricultural markets close to the developing regions, have crashed involving thirty for each cent and 40 for each cent over the final 10 times as the late kharif crop has started to flood the markets.

Officers, traders and exporters panic further fall in the bulb’s costs as the rabi crop is all established to strike the markets at any time soon after March fifteen.

“Onion costs had topped ₹ 4,000 a quintal in Nashik in the 3rd 7 days of February, but they have now dropped to levels of ₹2,five hundred as late Kharif crop arrivals have improved since the final 4-five times,” claimed Suvarna Jagtap, Lasalgaon Agricultural Make Marketing and advertising Committee (APMC) Chairperson. Lasalgaon is 1 of the most important markets for onion in Maharashtra’s Nashik district, the hub of the commodity’s trade.

According to the Ministry of Agriculture and Farmers Welfare, the modal selling price or the charge at which most trades took area on Tuesday was ₹2,660 a quintal for the Purple wide variety when compared with ₹4,000 on February twenty.

Unseasonal rains effect

Immediately after dropping from the highs noticed during September-Oct final calendar year, onion costs surged final thirty day period soon after unseasonal rains lashed the developing sections of Maharashtra, increasing fears over the crop prospects.

Selling prices in other developing States these as Gujarat and Maharashtra also improved in tandem since the latter is the leading producer in the region. Maharashtra accounted for practically forty one for each cent of onion developed during 2019-twenty.

Modal costs in other States these as Madhya Pradesh, the next-major grower, and Gujarat, the fifth-major producer, dropped in line with the Maharashtra craze. In Madhya Pradesh, the modal selling price dropped to ₹ 2,000 a quintal from ₹ 3,000 on February twenty five.

In Gujarat, the modal costs dropped to ₹ 2,four hundred on Tuesday from ₹ 3,000 during February 22-twenty five at Kapadvanj APMC in Kheda district.

Selling prices during the same time final calendar year ruled down below ₹ one,five hundred a quintal at Lasalgaon.

“The late Kharif onion has started arriving soon after some delay,” claimed PK Gupta, Performing Director at Nashik-dependent Countrywide Horticultural Investigate and Improvement Foundation (NHRDF).

 

Arrivals raise

Arrivals in Maharashtra improved during February twenty five-March 2 by 27 for each cent to 88,643 tonnes when compared with sixty nine,625 tonnes during February 18-23. At the same time, arrivals in Gujarat dropped to fifty eight,347.fifty five tonnes from seventy six,824 tonnes during the same period of time, although in Madhya Pradesh it was a tad greater at 6,819.twenty five tonnes vs . 6,761.07 tonnes.

In the course of February twenty five-March 2 final calendar year, arrivals in Maharashtra had been much greater at one.seventy three lakh tonnes, Ministry of Agriculture data showed.

“Prices have crashed as arrivals are flooding the market not only in Maharashtra but also in other developing States these as Gujarat,” claimed Jagtap.

No strengthen to exports

On the other hand, the drop in costs are not helping in boosting exports. “We are bit by bit receiving orders but they are not at past levels,” claimed Chennai-dependent Rajathi Team Director Madan Prakash.

“Pakistan is pretty competitive in the export market supplying onion at $four hundred a tonne. Right now, our selling price is $550 a tonne when compared with $seven hundred a couple of weeks in the past,” claimed Prakash, whose enterprise exports onion to South-East Asia.

The challenge with onion exports is that India has not been capable to get well soon after the ban imposed on shipments in September final calendar year to curb the sharp rise in costs. Apart from banning exports, the Centre also permitted responsibility-free of charge imports of onion as retail costs topped ₹ a hundred a kg then.

The steps assisted manage the rise in costs by Oct-conclusion and the ban on exports was lifted from the New 12 months.

On the other hand, to start with, importing nations around the world had shares of onion from other sources these as Egypt, Turkey and Holland and then, the Indian develop could not match the costs at which Pakistan and China made available to world wide purchasers.

Interestingly, ahead of the Centre can ban onion exports, its shipments during April one till September-conclusion at thirteen.07 lakh tonnes had exceeded final fiscal full exports of 11.forty nine lakh tonnes.

Bigger output in 2019-twenty

The exports took place on the heels of the Ministry of Agriculture, in its 3rd advance estimate of horticultural crops, pegging onion production greater during the 2019-twenty period (July-June) at 26.forty eight million tonnes from 22.eighty two million tonnes the past calendar year.

“We are receiving packaged cargo at Mumbai for exports at about Rs thirty,000 a tonne,” claimed Prakash.

This translated to $411 a tonne but shippers are acquiring to fork out a quality to transport firms for rapid shipments or spend on storage until eventually real shipments acquire area.

“Arrivals have improved, and costs could be below pressure likely forward,” Prakash claimed.

Little relief noticed

“We don’t see growers receiving relief from small costs as the Rabi crop will start arriving in two weeks’ time,” claimed Jagtap.

“Prices could drop to as small as ₹ one,five hundred over the following couple of weeks as arrivals are escalating,” claimed Sohanlal Bhandari, Nashik District Onion Traders Chairman.

Concurring with the traders’ views, NHRDF’s Gupta claimed the Rabi onion was predicted to get there as early as March fifteen. “The arrivals may possibly be greater as this calendar year the region below cultivation improved. But the generate for each hectare may possibly be small,” he claimed.

Excellent seeds issue

Growers did not sow high quality onion seeds, which could affect efficiency, the NHRDF official claimed.

Availability of high quality seeds has been an issue since growers have been promoting their develop when costs are significant than saving a component of it for resowing.

“The sharp drop in costs is now forcing farmers to keep back. This has resulted in arrivals slowing,” claimed Nashik-dependent trader Jayachandra Muthalya.

According to Ministry of Agriculture data, provisional arrivals in Maharashtra on March 2 had been 12,097 tonnes when compared with 18,052 tonnes on March one. For a important component of final 7 days, arrivals had been previously mentioned fifteen,000 tonnes in the State.

“Prices have dropped further by ₹ a hundred nowadays,” claimed Rajathi Group’s Prakash, pointing to the pressure on the market.

Jagtap claimed farmers cannot be keeping the late Kharif onion for very long since they did not have a longer shelf lifestyle like Rabi onion. “They will have to make certain that the develop is bought off rapidly,” she claimed.

At 1 position of time final 7 days, costs dropped down below ₹2,five hundred a quintal ahead of climbing back this 7 days.