Onion shortage: Prices may halve in two weeks on increased new arrivals

Prices in Lasalgaon mandi down to Rs 41/kg from Rs 71/kg last Saturday

Onion prices are likely to decline by 50 per cent in the next two weeks, as arrivals of seasonal and pre-seasonal varieties of “red onions” from Maharashtra, Gujarat, and Karnataka increase sharply.

Arrival of pre-matured onions has already brought down prices by 42 per cent since Sunday. In the benchmark Lasalgaon mandi (market), the largest spot wholesale onion market in Asia, prices have crashed. They were trading at Rs 41 a kg on Tuesday compared to Rs 71 a kg on Saturday. Onion arrivals on Tuesday surged to 704 tonnes, compared to 421 tonnes on Sunday. Arrival of stored onions, however, has declined over the past two days. Sources said there was hardly any available stock after much of it was spoiled in warehouses because of floods.

“Onion prices are likely to be between Rs 20 a kg and Rs 25 a kg by January. Onion Price will decline gradually as arrivals increase steadily. In the next two weeks, we expect it to fall to Rs 30-35 a kg,” said Suvarna Jagtap, chairman, Agriculture Produce Market Committee (APMC), Lasalgaon.

Arrivals of red onion — that cannot be stored for more than three days because of high moisture content — have also increased. Traders and stockists sell this variety within two days after it is dried in the sun.

“Onion arrivals will increase steadily in the coming days as farmers are harvesting pre-matured crop to cash in on high prices. Currently, arrivals are coming in from Nashik, and Dhulia districts. Arrivals from Nandurbar, Jalgaon, Dhule, and other centres are yet to start. Once arrivals begin from these centres, prices will decline steeply,” said Sudin G Tarle, assistant secretary, APMC Lasalgaon.