Onion prices crash 30-40% in 10 days

Onion charges throughout the nation, notably in primary agricultural markets close to the growing locations, have crashed in between thirty for every cent and forty for every cent over the last 10 times as the late kharif crop has begun to flood the markets.

Officers, traders and exporters panic additional drop in the bulb’s charges as the rabi crop is all established to strike the markets at any time right after March fifteen.

“Onion charges experienced topped ₹ 4,000 a quintal in Nashik in the third 7 days of February, but they have now dropped to amounts of ₹2,500 as late Kharif crop arrivals have elevated due to the fact the last 4-five times,” reported Suvarna Jagtap, Lasalgaon Agricultural Produce Marketing 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.

In accordance to the Ministry of Agriculture and Farmers Welfare, the modal cost or the level at which most trades took place on Tuesday was ₹2,660 a quintal for the Red range in comparison with ₹4,000 on February twenty.

Unseasonal rains result

After dropping from the highs noticed through September-Oct last calendar year, onion charges surged last thirty day period right after unseasonal rains lashed the growing sections of Maharashtra, boosting fears over the crop potential clients.

Prices in other growing States these as Gujarat and Maharashtra also elevated in tandem due to the fact the latter is the leading producer in the nation. Maharashtra accounted for just about 41 for every cent of onion manufactured through 2019-twenty.

Modal charges in other States these as Madhya Pradesh, the 2nd-biggest grower, and Gujarat, the fifth-biggest producer, dropped in line with the Maharashtra pattern. In Madhya Pradesh, the modal cost dropped to ₹ 2,000 a quintal from ₹ 3,000 on February twenty five.

In Gujarat, the modal charges dropped to ₹ 2,400 on Tuesday from ₹ 3,000 through February 22-twenty five at Kapadvanj APMC in Kheda district.

Prices through the exact time last calendar year ruled underneath ₹ 1,500 a quintal at Lasalgaon.

“The late Kharif onion has begun arriving right after some hold off,” reported PK Gupta, Performing Director at Nashik-based Nationwide Horticultural Investigation and Progress Basis (NHRDF).

Arrivals raise

Arrivals in Maharashtra elevated through February twenty five-March 2 by 27 for every cent to 88,643 tonnes in comparison with sixty nine,625 tonnes through February eighteen-23. At the exact time, arrivals in Gujarat dropped to fifty eight,347.55 tonnes from 76,824 tonnes through the exact time period, though in Madhya Pradesh it was a tad higher at six,819.twenty five tonnes as opposed to six,761.07 tonnes.

During February twenty five-March 2 last calendar year, arrivals in Maharashtra were being considerably higher at 1.seventy three lakh tonnes, Ministry of Agriculture data confirmed.

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

No boost to exports

Having said that, the drop in charges are not aiding in boosting exports. “We are little by little receiving orders but they are not at former amounts,” reported Chennai-based Rajathi Team Director Madan Prakash.

“Pakistan is really competitive in the export industry providing onion at $400 a tonne. Right now, our cost is $550 a tonne in comparison with $700 a several months in the past,” reported Prakash, whose firm exports onion to South-East Asia.

The problem with onion exports is that India has not been in a position to get well right after the ban imposed on shipments in September last calendar year to curb the sharp increase in charges. In addition to banning exports, the Centre also allowed duty-absolutely free imports of onion as retail charges topped ₹ 100 a kg then.

The measures helped control the increase in charges by Oct-close and the ban on exports was lifted from the New 12 months.

Having said that, initially, importing nations around the world experienced shares of onion from other sources these as Egypt, Turkey and Holland and then, the Indian produce could not match the charges at which Pakistan and China supplied to global prospective buyers.

Interestingly, right before the Centre can ban onion exports, its shipments through April 1 until September-close at 13.07 lakh tonnes experienced exceeded last fiscal whole exports of eleven.forty nine lakh tonnes.

Larger output in 2019-twenty

The exports happened on the heels of the Ministry of Agriculture, in its third progress estimate of horticultural crops, pegging onion manufacturing higher through the 2019-twenty time (July-June) at 26.forty eight million tonnes from 22.eighty two million tonnes the former calendar year.

“We are receiving packaged cargo at Mumbai for exports at all around Rs thirty,000 a tonne,” reported Prakash.

This translated to $411 a tonne but shippers are having to pay back a quality to transport corporations for speedy shipments or shell out on storage right until true shipments take place.

“Arrivals have elevated, and charges could be under stress going ahead,” Prakash reported.

Minor reduction noticed

“We don’t see growers receiving reduction from lower charges as the Rabi crop will begin arriving in two weeks’ time,” reported Jagtap.

“Prices could drop to as lower as ₹ 1,500 over the upcoming several months as arrivals are raising,” reported Sohanlal Bhandari, Nashik District Onion Traders Chairman.

Concurring with the traders’ sights, NHRDF’s Gupta reported the Rabi onion was anticipated to get there as early as March fifteen. “The arrivals could be higher as this calendar year the place under cultivation elevated. But the produce for every hectare could be lower,” he reported.

High-quality seeds issue

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

Availability of quality seeds has been an issue due to the fact growers have been selling their produce when charges are superior than saving a element of it for resowing.

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

In accordance to Ministry of Agriculture data, provisional arrivals in Maharashtra on March 2 were being twelve,097 tonnes in comparison with eighteen,052 tonnes on March 1. For a important element of last 7 days, arrivals were being above fifteen,000 tonnes in the State.

“Prices have dropped additional by ₹ 100 today,” reported Rajathi Group’s Prakash, pointing to the stress on the industry.

Jagtap reported farmers are not able to be holding the late Kharif onion for extended due to the fact they did not have a longer shelf life like Rabi onion. “They will have to assure that the produce is offered off quickly,” she reported.

At 1 issue of time last 7 days, charges dropped underneath ₹2,500 a quintal right before climbing back this 7 days.