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LATEST NEWS UPDATES | Onion prices soar on supply squeeze -Vishwanath Kulkarni & Rahul Wadke

Onion prices soar on supply squeeze -Vishwanath Kulkarni & Rahul Wadke

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published Published on Aug 4, 2017   modified Modified on Aug 4, 2017
-The Hindu Business Line

Scale Rs. 2,300/quintal; reports of traders hoarding the bulbs

Bengaluru/ Mumbai:
Onion prices at Lasalgaon, the country’s largest wholesale market for the vegetable, surged on Thursday to touch a high of Rs. 2,300 per quintal on tight supplies. The modal prices have almost doubled over the past two days and more than quadrupled since early July, when prices hovered around Rs. 500.

Prices across the country are expected to flare up as the demand for Maharashtra onions has picked up on a shortfall in supplies from Karnataka and Andhra Pradesh due to deficit rainfall, which affected production in these States. On the other hand, excess rainfall in Rajasthan and Gujarat has reduced supplies from there, contributing to the price surge, traders said.

Maharashtra has for now emerged the primary supplier and will remain so for the next couple of months. “Traders and growers in Maharashtra, who are aware of the weak supply situation in other States, have begun hoarding onion, triggering a price spike,” said Saleem Byahatti, Secretary of the Onion and Potato Traders Association in Hubbali, the largest market in North Karnataka.

“Maharashtra still has about half the rabi produce, while fresh supplies have shrunk from Andhra and Central Karnataka,” Byahatti added.

In Central Karnataka districts such as Chitradurga, onion planting has been hit by not only poor rains, but also due to the declining water table as the region has been hit by consecutive droughts. “Only 25-30 per cent of the crop in this region is available, and supplies are expected later this month. Supplies of new crop from Kurnool region in Andhra are also down drastically due to weak rains. As against a normal supply of 150-200 truckloads, we are getting only 10-20 trucks,” Byahatti said.

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The Hindu Business Line, 3 August, 2017, http://www.thehindubusinessline.com/news/onion-prices-soar-on-supply-squeeze/article9801024.ece?homepage=true


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