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Onion prices move north despite export ban


PUNE: Onion prices continue to rise even after India banned onion exports on September 14 to rein in prices. Having increased by 20% to 30% during last 10 days since exports were banned, onion prices are expected to continue their upward trajectory till December as excess rainfall damaged and delayed the kharif harvest in the key growing states.

Average wholesale onion prices at the benchmark Pimpalgaon market in Nashik district increased from 27/kg on September 14 to 36/kg on September 22. Prices are comparatively lower in North India, with wholesale prices ranging between 12/kg and 35/kg on Tuesday. In retail, good quality onions are selling at 40-60/kg.

Traders had alleged that speculators had used the acute shortage of onions in Bangladesh to increase the prices. From June to October, India consumes onions from stored stocks, while the new arrivals of the kharif crop that start coming from the southern states, supplements the stocks from August.

Any disruption in arrival of new crop due to rains at the time of harvest, always leads to rise in prices during August/September.

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