Onion prices expected to remain stable till Oct

 

 

 

The consumers will not have to shed any tears this season as onion prices are expected to remain under pressure for a few more months. It seems that the effects of Central Government’s recent decision to impose 40 per cent export duty on onions has born fruit as it has increased the supply and restricted the prices from rising in the wholesale market.

“With the implementation of 40 per cent export duty on onions by the Central Government the prices are expected to remain stable till the new crop arrives in October,” said Gaurav Harde, President of Kanda Batata Bazar Aditya Welfare Association, Kalamna Wholesale Market Yard while speaking to The Hitavada.

 

Harde further said, “The decision to hike export duty by 40 per cent on onions was taken by Government in order to increase the availability of onions in the domestic market and contain the prices from rising in the festival season”. Because of the Central Government’s intervention, private traders who were holding on to their stocks have also started offloading fearing crash in prices, he pointed out. In the Kalamna wholesale market red onions are being quoted at Rs 20 per kg to Rs 25 per kg. The produce is coming from Khamgaon, Buldhana and Paratwada. On a daily average about 20 to 25 trucks are unloading their stock in the market. On the other hand, the white onions are being quoted at Rs 30 per kg to Rs 40 per kg. The white onions are coming from Talegoan and Paratwada.

 

The white onions are scarce to get as the crop was damaged to a large extent due to heavy rains in the month of April. About 1 to 2 trucks on daily average are coming to the market, he said. In retail, the red onions are being sold for Rs 30 per kg to Rs 40 per kg, while white onions are being sold for Rs 50 per kg. Bangladesh is a major importer of onions from India. The hike in export duty has affected exports to Bangladesh and at present exports have come to a standstill. “By now the onion prices would have shot up to Rs 50 per kg in wholesale market if the hike in export duty were not in place”, he added.