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Onion sowing for the kharif season has been delayed by a few weeks in the absence of rain in most of the grower states, such as Karnataka, Andhra, Madhya Pradesh, Gujarat and Maharashtra.
The stock available at the season’s opening is 3.9 million tonnes, 80 per cent higher than last year. Monthly consumption is estimated at 1.2 mt, enough for about three months.
R P Gupta, Director, National Horticultural Research and Development Federation, said: “In kharif onion growing states, the rains generally arrive by early June. Three weeks have passed and farmers are waiting. This means the fresh crop will arrive (only) in October-November.” He said there was also a shortage of quality seeds.
At the big Lasalgaon mandi near Nashik, Maharashtra, onion was Rs 13 a kg on Thursday, marginally below Wednesday’s. Supplies continue from cold-storage stocks, keeping prices in check.
Ajit Shah, president of Indian Horticulture Exporters Association and a large exporter of onion and potatoes, said: “China and Pakistan are selling onion cheaper than India’s price. Any report of an unfavourable monsoon would mean prices will shoot up.”
Gupta of NHRDF said, “If the price starts moving up on shortage, the government should not waste time in importing.” He also suggested some curbs on export were necessary. On Wednesday evening, the Forward Markets Commission banned fresh positions in potato futures, resulting in June contract prices down four per cent to Rs 1,271 a quintal. In the wholesale market, prices have been stable.
