Onion prices crash 30-40% in 10 days

Onion prices throughout the place, notably in principal agricultural markets around the growing areas, have crashed involving 30 for every cent and forty for every cent more than the past ten days as the late kharif crop has started to flood the markets.

Officials, traders and exporters panic further more fall in the bulb’s prices as the rabi crop is all set to hit the markets whenever following March 15.

“Onion prices experienced topped ₹ four,000 a quintal in Nashik in the third week of February, but they have now dropped to levels of ₹2,five hundred as late Kharif crop arrivals have improved since the past four-5 days,” reported Suvarna Jagtap, Lasalgaon Agricultural Make Marketing and advertising Committee (APMC) Chairperson. Lasalgaon is one of the most significant 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 value or the level at which most trades took position on Tuesday was ₹2,660 a quintal for the Crimson wide range when compared with ₹4,000 on February 20.

Unseasonal rains outcome

After dropping from the highs seen during September-October past 12 months, onion prices surged past thirty day period following unseasonal rains lashed the growing elements of Maharashtra, boosting fears more than the crop prospects.

Costs in other growing States these kinds of as Gujarat and Maharashtra also improved in tandem since the latter is the leading producer in the place. Maharashtra accounted for approximately forty one for every cent of onion developed during 2019-20.

Modal prices in other States these kinds of as Madhya Pradesh, the 2nd-greatest grower, and Gujarat, the fifth-greatest producer, dropped in line with the Maharashtra trend. In Madhya Pradesh, the modal value dropped to ₹ two,000 a quintal from ₹ three,000 on February twenty five.

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

Costs during the very same time past 12 months ruled down below ₹ 1,five hundred a quintal at Lasalgaon.

“The late Kharif onion has started arriving following some hold off,” reported PK Gupta, Acting Director at Nashik-based mostly National Horticultural Research and Improvement Foundation (NHRDF).

 

Arrivals increase

Arrivals in Maharashtra improved during February twenty five-March two by 27 for every cent to 88,643 tonnes when compared with sixty nine,625 tonnes during February eighteen-23. At the very same time, arrivals in Gujarat dropped to 58,347.55 tonnes from 76,824 tonnes during the very same period, although in Madhya Pradesh it was a tad increased at six,819.twenty five tonnes as opposed to six,761.07 tonnes.

In the course of February twenty five-March two past 12 months, arrivals in Maharashtra had been a great deal increased at 1.73 lakh tonnes, Ministry of Agriculture knowledge confirmed.

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

No boost to exports

On the other hand, the fall in prices are not supporting in boosting exports. “We are slowly but surely finding orders but they are not at former levels,” reported Chennai-based mostly Rajathi Team Director Madan Prakash.

“Pakistan is really competitive in the export market featuring onion at $four hundred a tonne. Now, our value is $550 a tonne when compared with $seven hundred a couple of weeks ago,” reported Prakash, whose corporation exports onion to South-East Asia.

The dilemma with onion exports is that India has not been equipped to recuperate following the ban imposed on shipments in September past 12 months to control the sharp rise in prices. Other than banning exports, the Centre also permitted responsibility-no cost imports of onion as retail prices topped ₹ 100 a kg then.

The actions assisted command the rise in prices by October-end and the ban on exports was lifted from the New 12 months.

On the other hand, first, importing nations around the world experienced shares of onion from other sources these kinds of as Egypt, Turkey and Holland and then, the Indian make could not match the prices at which Pakistan and China made available to world wide buyers.

Curiously, just before the Centre can ban onion exports, its shipments during April 1 until September-end at 13.07 lakh tonnes experienced exceeded past fiscal total exports of 11.49 lakh tonnes.

Increased output in 2019-20

The exports took place on the heels of the Ministry of Agriculture, in its third advance estimate of horticultural crops, pegging onion generation increased during the 2019-20 season (July-June) at 26.48 million tonnes in opposition to 22.82 million tonnes the former 12 months.

“We are finding packaged cargo at Mumbai for exports at around Rs 30,000 a tonne,” reported Prakash.

This translated to $411 a tonne but shippers are getting to shell out a top quality to shipping and delivery firms for fast shipments or expend on storage right up until real shipments acquire position.

“Arrivals have improved, and prices could be beneath stress likely ahead,” Prakash reported.

Very little reduction seen

“We never see growers finding reduction from low prices as the Rabi crop will get started arriving in two weeks’ time,” reported Jagtap.

“Prices could fall to as low as ₹ 1,five hundred more than the up coming couple of weeks as arrivals are raising,” reported Sohanlal Bhandari, Nashik District Onion Traders Chairman.

Concurring with the traders’ views, NHRDF’s Gupta reported the Rabi onion was anticipated to arrive as early as March 15. “The arrivals could be increased as this 12 months the space beneath cultivation improved. But the yield for every hectare could be low,” he reported.

High quality seeds challenge

Growers did not sow top quality onion seeds, which could have an impact on efficiency, the NHRDF official reported.

Availability of top quality seeds has been an challenge since growers have been selling their make when prices are superior than conserving a aspect of it for resowing.

“The sharp fall in prices is now forcing farmers to hold back again. This has resulted in arrivals slowing,” reported Nashik-based mostly trader Jayachandra Muthalya.

According to Ministry of Agriculture knowledge, provisional arrivals in Maharashtra on March two had been twelve,097 tonnes when compared with eighteen,052 tonnes on March 1. For a main aspect of past week, arrivals had been earlier mentioned 15,000 tonnes in the State.

“Prices have dropped further more by ₹ 100 currently,” reported Rajathi Group’s Prakash, pointing to the stress on the market.

Jagtap reported farmers are unable to be holding the late Kharif onion for very long since they did not have a longer shelf existence like Rabi onion. “They will have to assure that the make is marketed off quickly,” she reported.

At one point of time past week, prices dropped down below ₹2,five hundred a quintal just before climbing back again this week.