Chart Sources say the worry is when rabi arrival time comes in January, a price spurt is a possibility. The crop this year, 2018-19, is estimated at below 20 million tonnes, a second year of lower production.
Kharif (autumn crop) shipments have started at the major wholesale market of Lasalgaon and its surrounding areas. Prices are around Rs11 (€0.14). New crop arrivals were 30 percent lower on Friday.
Ajit Shah, president, Onion Exporters Association of India, says prices have been moderate for a while because export demand is down. “India’s onions are costlier and importers have shifted to Pakistan, which is selling 40 percent cheaper than India,” he explained. He was optimistic that if export demand is not revived in the coming months when the rabi crop arrives, prices will not see much of an impact.
Chart Some traders, however, feared that Thursday's fall in arrivals was a signal. If farmers start storing onion in cold storages, then prices will start strengthening, they say.
India produced 22.5 million tons of onions in 2016-17. The 2017-18 crop was estimated at 22 million tons. If the crop drops 10 percent, there is reason for worry.
Source: business-standard.com
