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LATEST NEWS UPDATES | Overseas markets wipe away tears of onion traders hit by low domestic prices -Amrita Nair Ghaswala

Overseas markets wipe away tears of onion traders hit by low domestic prices -Amrita Nair Ghaswala

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published Published on Nov 29, 2018   modified Modified on Nov 29, 2018
-The Hindu Business Line

Mumbai: Onion exports have picked up on firm overseas demand even as domestic prices continue to rule low, as the new crop hits the markets in the backdrop of huge carry forward stocks.

Experts attribute the pick-up in demand over the past few months to a lower global output due to changing climatic conditions.

Ganpat Vaishnav, owner of Ganesh Impex, moved to exporting onions over the last three months, given the massive demand.

“I kept getting huge orders from Malaysia and Dubai. Earlier, I used to only trade in the local market, but the crash in onion prices here was unsettling. Now, I am able to ship large quantities and can command a decent margin,” Vaishnav told BusinessLine.

In the local market, Ganesh Impex dealt with 50-60 tonnes of onion per day, and ended most days in the red due to fluctuating price. Now, on any given day, the company exports 100-150 tonnes, “especially to Dubai, Indonesia and Sri Lanka with demand rising every day,” he said.

It has bolstered hopes for many other traders, who have also taken to exports to keep their business from folding up. India is the world’s second-largest producer of onions, after China.

The drastic fall in prices has brought tears to many onion traders, said Vaishnav, adding that farmers who had stored summer onions in the hope of better prices, have been selling the bulb at “throwaway prices since they have been incurring heavy losses”. Modal prices of onion at Lasalgaon, the largest market in the country are now hovering at Rs.776 per quintal as against Rs.1,019 in early November.

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The Hindu Business Line, 28 November, 2018, https://www.thehindubusinessline.com/economy/agri-business/overseas-markets-succour-onion-traders-hit-by-low-domestic-prices/article25615832.ece?homepage=tr


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