Onion prices rise 10% on delayed kharif crop
New Delhi, Oct. 20 -- Onion prices have risen about 10% in wholesale markets over the past week as delayed arrivals of the new kharif crop tighten supplies, with traders expecting prices to climb further by another Rs.8-10 per kg before fresh produce reaches markets in larger quantities in November.
At Lasalgaon, one of India's largest onion trading markets in Maharashtra, prices touched Rs.4,551 per quintal on Monday, up about Rs.2 per kg from Saturday. Daily arrivals have fallen around 15% over the past week, according to Vikas Singh of the Horticulture Produce Exporters Association (HEPA). The increase comes as stocks from the previous rabi harvest are running low, while arrivals of the new kharif crop have been delayed by nearly a month.
Pushan Sharma, director at Crisil Intelligence, attributed the delay to weak rainfall in June, which was 40% below the long-period average and affected onion sowing and transplantation.
"Rabi stocks are largely depleted and kharif stocks are arriving at a very slow pace. This is why onion prices still remain elevated," Sharma said.
India produces onions in two main seasons. The rabi crop, sown around November-December and harvested in March-April, accounts for nearly two-thirds of annual production. This crop is stored and used to meet market demand until September or early October, when supplies from the kharif harvest typically begin arriving. This year, however, kharif arrivals that usually begin around late September or early October are expected to pick up only towards the end of October, Sharma said.
Singh said the new crop from Nashik, which generally starts arriving around October 15, has also been delayed.
Some traders expect onion prices to rise by another Rs.8-10 per kg before the increase in supplies begins easing the pressure.
Sharma expects prices to moderate as arrivals improve, although festive demand could keep them elevated in the immediate term....
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