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Onion prices may rise by Oct on low production

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Press Trust of India New Delhi

On its part, the government, already battling the near 12 per cent inflation, may have to resort to make exports costly to ensure maximum availability of onion, considered a poor man's food.     

"Prices are likely to rise in October due to a shortage of onions, thanks to low rainfall in some parts of major producing states which has delayed the early kharif sowing," a senior official of agri cooperative and nodal agency for onion exports NAFED said.     

 

Onion prices have always been a sensitive issue and any mojor movement in prices when five states are going for elections could be a cause for concern.     

Not just delayed sowing, hoarders,too, play a major role in the price rise, the official said.     
However, he said the storage level this year is higher at 25 lakh tonnes against 22 lakh tonnes last year.

But even then, he added, the stocks may not be sufficient to tackle the demand.     
Already, low rainfall in leading onion producing states such as Maharashtra and Karnataka has dented its acreage.     

"Low rainfall has affected crop areas and productivity. But we are hopeful that the last week of July and the first week of August will bring some cheer on the monsoon front," Nasik-based National Horticultural Research and Development Foundation (NHRDF) Additional Director Satish Bhonde said.     

However, the output in the kharif season may fall to 10-11 lakh tonnes, compared with 14 lakh tonnes in the same period last year, he said, adding the production may decline further if it doesn't rain in the next fortnight in the producing belts of Maharashtra.

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First Published: Jul 25 2008 | 6:48 PM IST

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