Onion prices likely to ease as arrivals grow, but retail rates remain high
New Delhi, Oct. 12 -- Onion prices are likely to ease in the coming weeks as the increase in fresh kharif supplies along with the remaining stocks of old-crop will improve availability of the kitchen staple, people familiar with the matter said. The expected cooling of retail prices, which at present remain nearly double the last year's prices, is likely to bring respite to people ahead of the festive season.
The all-India average retail price of onion stood at Rs.52.99 per kg on October 10, marginally lower than Rs.53.10 per kg a month ago and significantly higher than Rs.26.65 a year ago, according to government data. Similarly, wholesale prices averaged Rs.4,591 per quintal, up 2.4% over the past month and 123.3% from a year earlier.
Traders expect increased arrivals from Maharashtra and other growing states to improve availability through November. "Kharif arrivals have begun in any (or many?) markets," said Vikas Singh of the Horticulture Produce Exporter Association, adding that domestic demand was weak and exports negligible.
Maharashtra and Madhya Pradesh have sufficient old-crop stocks to meet demand until the third week of November, Singh said. Supplies from Karnataka, Telangana and Andhra Pradesh are expected to continue until the end of November, while Maharashtra's early kharif crop is likely to begin arriving in small quantities by the end of October, he said.
Singh said Maharashtra's early kharif crop was expected to be good in both production and quality. "Supplies from Rajasthan's Alwar region are also expected to reduce north India's dependence on onions from Maharashtra," Singh said.P5...
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