Onion output dropped to 189.2 lakh tonnes in 2014-15 crop year due to poor rains
Prices started rising again beyond Rs 30 per kg in the last one week and are now ruling at Rs 32 per kg at Lasalgaon
Trade sources believe that tomato supply from Maharashtra has slumped due to incessant rain in the state towards the fag end of the monsoon season, reports Dilip Kumar Jha.
Large stocks were ruined in transit due to thunderstorm and rainfalls in the north and the north-east states, resulting in fewer kilos of potatoes at mandis.
The crop is currently trading at Rs 22 a kg compared to Rs 12.50 one month ago.
However, truckers have spared other vegetables, fruits, fuel and milk from the strike.
Prices start downward trend but rainfall, supply restrict climbdown.
In the coming weeks prices are expected to further cool down as new crop from Karnataka has started coming into the market.
To give relief to Delhiites, the National Agricultural Cooperative Marketing Federation of India Ltd has started selling onions at Rs 55 a kg through its five retail outlets and two mobile vans in the national capital.
Because of the reluctance to intervene structurally in the political economy of onion trade, the BJP is paying the price till today and might continue to do so in the forthcoming election to the Delhi assembly.
Traders said wholesale prices are firm as supplies from producing regions have been lower in the past couple of days.
Traders say prices will remain elevated due to increased demand, lower availability
'Onion supply to mandis has declined due to its lower availability.'
Increased harvesting is expected to boost supply
India exports about 1.5 mt of onion every year.
Sowing up 400%; prices may be low in 2014 as Maharashtra, MP and Bengal also likely to increase acreage 15-20%.
Retail prices across the country continued to be at Rs 80 a kg.
Govt floated import tender, allowed import without fumigation.
The domestic availability of onion has been affected on account of damage to kharif crop because of unseasonal rains in key producing states including Maharashtra.
Shortage of seeds, threat of El Nino expected to restrict sowing.
A Ganesh Nadar speaks to onion farmers in Nashik, India's largest wholesale onion market, about the high prices.
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