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Onion prices expected to remain firm until Diwali festival : Traders

"Onion prices expected to remain firm until Diwali festival - Traders"

Onion prices are expected to remain firm until Diwali, according to traders, as the vegetable’s rates in metros such as Delhi and Mumbai hovered around ₹ 60/kg, pushed up by speculation that crop damage caused by untimely rains may affect supplies.

Along with onions, the prices of tomatoes and vegetables such as cabbage and bottle gourd have risen as a result of excessive moisture, which has harmed crop quality.

Also Read: Onion prices in the commodity’s hub, have risen by ₹750 per quintal

According to traders, the weather will continue to be the most vital factor influencing onion prices until December 2021, when the arrival of the new crop is typically at its peak.

‘There is a lot of uncertainty. If the weather continues to be a factor, prices may rise even further. However, if we get good weather, prices may stay stable until Diwali,’ said HS Bhalla, an onion trader from Delhi’s Azadpur APMC (agriculture produce marketing committee).

Wholesale onion rates at the benchmark Lasalgaon market in Nashik district, which is currently the largest supplier of onions to Delhi, have more than doubled in the last month.

The average wholesale price at the Lasalgaon market has risen by 120 percent, from ₹ 14.75/kg in September to ₹ 33.40/kg in October. Onion prices at the Bengaluru APMC increased from ₹ 10/kg on September 8 to ₹ 35/kg on October 13.

Onion Market Rates in Hubli

The average prices of Onion at the Hubali market in north Karnataka, where the Kharif onion crop is harvested, have risen from ₹ 8.50/kg on September 16th to ₹ 14.50/kg on October 16th.
Latest Price Date: 2021-10-18:
Avg Price: ₹ 1700.00/Quintal
Maximum Market Price: ₹ 4000.00/Quintal
Minimum Market Price: ₹ 250.00/Quintal

The consumer affairs ministry has begun releasing onions from buffer stock in states where prices are higher than the all-India average. The ministry said in a press release that of the 208,000 tonnes of buffer stock created for 2021-22, 67,357 tonnes had been released as of October 12.

‘During the last few days, onion prices have fallen by ₹ 3-4/kg. If there is clear weather and no more rains in the coming days, Onion prices can remain stable at current levels.’ the president of the Onion Exporters’ Association Mr. Ajit Shah said.

Also Read: Govt to purchase 2Lt onions as excess inventory to meet future demand

According to traders, demand for onions is still low, which has kept prices from skyrocketing.’Onion demand is decreasing. In addition to Maharashtra and Karnataka, there are concerns about the onion crop in states such as Gujarat, Rajasthan, and Madhya Pradesh, which may prevent any significant reduction in onion prices,’ said Bhalla.