Onion price at all time low as arrivals increase

The year 2016 had been particularly bad for onion trade as prices were on the lower side for several months. Trade at Lasalgaon market — the largest onion market in the country — was suspended twice due to agitation by traders. Barring January, the modal price of bulb in the market was below Rs 10 per kg, causing significant losses to onion farmers. Months of September and October were even worse as prices had dipped to Rs 4.20 per kg and Rs 5.97 per kg respectively.

Modal prices in November, however, was Rs 9.27 per kg but the market was closed for operation for larger part of the month due to problems of cash crunch post demonetisation. December recorded modal price of Rs 6.29 per kg while prices in January has been consistently below Rs 8 per kg.

In view of the low prices of the commodity, the Central government had consistently kept the Minimum Export Price (MEP) of the produce at zero and also extended the 5 per cent export subsidy of the produce till March-end. At Lasalgaon market, prices are subdued even though arrival of the produce is lower than last year.

On January 13, 2016, 27,063 quintals of onions had arrived for trade as against 24,000 quintals of arrival reported in the market on the same day this year. As late kharif crops start to arrive in the market, more price correction is expected in the coming days.

Commodity analyst Deepak Chavan said the present crisis can be explained if arrival of onion in other markets are taken into consideration. “Markets in the Yeola taluka have reported significant increase in arrivals and more onion is expected to come into the market,” he said.

Onion farmers on the other hand have demanded that exports be boosted to help stabilise the prices. Santosh Gorade, youth president of the Swabhimani Shetkari Sanghathana of Nashik said the present glut in the market can be removed only if exporters were given specific targets.