Onion prices expected to drop after a fortnight

Onion prices were expected to come down in 14-21 days after arrival of the late kharif crop. The planting of the late kharif crop was delayed by unseasonal and late rains, which in turn delayed the harvest and pushed up prices.

National Horticultural Research and Development Foundation (NHRDF), a research body working on onion and garlic, has estimated that onion production in 2004 was likely to be higher than in 2003. However, delay in arrival of the fresh crop have led to the price surge.

The late kharif crop was expected to arrive in markets by the third week of January, late by some 14-21 days due to late sowing. Sowing was delayed in the major producing state of Maharashtra.

Data compiled by the agriculture ministry indicated wholesale prices of onion this season were nearly double of prices in the same period of 2003.

Wholesale price in Delhi on December 19, 2002, was Rs 400 per quintal, against Rs 800/q in 2003. In Chennai, wholesale prices this season were at around Rs 800/q, against Rs 450/q in 2003. In Kanpur, prices were around Rs 500/q this time, against Rs 290/q a year ago.

Retail prices since mid-December this season have been ruling between Rs 12 and Rs 15 a kg. According to NHRDF, onion was grown through the year in the kharif, late kharif and rabi crops.

The rabi crop arrived in markets in April to June, kharif between October and December and the late kharif crop between January and March.

As onion bulbs of the rabi crop had relatively longer shelf life, a part of this crop was stored to meet demand in the lean period of July to September-October.

NHRDF said onion production this year was likely to be 5.76 million tonnes against last year's 5.5 million tonnes.

This included 9.91 lakh tonnes from the kharif onion crop, 1.31 million tonnes from the late kharif and 3.46 million tonnes from the rabi crop.

Corresponding figures for the previous year were 9.82 lakh tonnes, 1.23 million tonnes and 3.27 million tonnes, respectively, for the kharif, late kharif and rabi harvests.