Onion prices expected to decline further from current two-year lows

Onion prices are expected to decline further from their current two-year low level owing to arrival of late kharif crop in good numbers in most parts of the country.
With the government removing all restrictions on export in anticipation of a glut, Indian produce is dominating all major international markets including Malaysia, Sri Lanka and West Asian nations.
The fall in prices has continued nonetheless, prompting angry farmers to stop auctions for some time at the Pimpalgaon Baswant in Maharashtra’s Nashik district on Tuesday.

“The decline in prices was expected. Prices may decline further by another Re 1 per kg and stabilise at Rs 6.5 per kg,” said Ajit Shah, president of Onion Exporters Association of India.
Exports are not able to stem the fall in prices, he said.
Markets across the country are reporting an increase in supply of onions. The arrival of onion at Pimpalgaon APMC (agricultural produce marketing committee) in January was higher by 1.5 lakh quintals compared to that a year ago, said Dilip Bankar, chairman of the Pimpalgaon APMC.
With onion available in all parts of the country, demand from net importers such as Delhi and West Bengal has reduced.
“Onion is abundantly available in Maharashtra as well as all other states,” said Danish Shah, one of the oldest onion exporters from the country.
Farmers and traders blamed the continued fall in prices on the delay by the central government in removing the restrictions on export.

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Source: The Economics Times