Expect onion prices to climb in coming months

Delayed Monsoon, Lower Minimum Export Prices Likely To Keep Prices High

ONION prices are expected to rise by Rs 2-4 per kg in the coming months owing to poor supply, delayed monsoon and decreased minimum export price (MEP) Tamil Nadu Agricultural University has said.
    A survey by the university has advised farmers to store small onion and sell them during October-November as its prices are expected to rise in the coming months. Delayed monsoon, decreased MEP and reduced arrivals from Karnataka would support the prices to rule on the higher side in Tamil Nadu according to the survey carried out by Domestic and Export Market Intelligence Cell (Demic) of Tamil Nadu Agricultural University. If there is rainfall in Palladam, Tirupur and Perambalur and erode areas in Tamil Nadu during harvest, the farmers prices would increase beyond Rs 15 per kg, it said.
    Arrivals from Karnataka have come to an end this year in early August itself and currently farmers were getting a price of around Rs 6 to Rs 11 per kg depending on quality. According to the study for the next three months the prices would hover around Rs 8 to Rs 15 per kg. The country produced around 74.51 lakh tonne of onion from 5.28 lakh hectare in 2007-08 which was 11% higher than that of the previous year according to the estimates of the National Horticulture Research and Development Foundation.
    Exports stood at about 11 lakh tonne during the period which was 5% less than that of 2006-07 due to the government restrictions on export like increasing MEP and quantity restrictions.
    Both production and export consisted of Bellary onion as well as small onions. Bellary onion produced in Maharashtra, Gujarat, Karnataka and Tamil Nadu were exported to Malaysia, Singapore, Seychelles, Bangladesh and the Middle East countries.
    Small onions grown mostly in the southern states and also known as rose onion and Krishnapuram onion were grown in Kolar district in Karnataka and Cuddapah district in Andhra Pradesh. Multiplier onion known as podisu and shallots were grown in Tamil Nadu, Puducherry and Andhra Pradesh.
    Small onion produced in Karnataka and Andhra Pradesh were exported from Chennai port to Singapore and Malaysia and multiplier onions to Singapore, Malaysia and Sri Lanka. MEP ranged from $360 per tonne of podisu onion to $520 a tonne for Bangalore rose onion. The prices of small onion this month have increased by about 20%.