Onion prices cool, but may go up as cyclone Ockhi hits its transport

PUNE: Onion prices have plunged 30% in the wholesale markets over the last two weeks following the imposition of export restrictions and increasing arrivals of the Kharif crop.

However, prices showed a marginal rise on Tuesday at the country’s main onion wholesale market at Lasalgaon in Maharashtra as rains under the influence of cyclone Ockhi slowed movement of the bulb. Traders said concerns over the impact of rainfall on harvest and movement of fresh onions will weigh over prices in the next few days.


“The market went up in the morning trade on Tuesday as arrivals had slightly decreased due to rainfall. If the rainfall causes damage to the crop, prices may remain firm,” said Sohanlal Bhandari, an onion trader from Nashik.

The average wholesale price in the benchmark Lasalgaon are ruling at Rs 25 a kg, down from Rs 35 on November 27. A further decline in prices this week will depend on the Ockhi-induced rainfall in Gujarat and Maharashtra.

Onion supplies to Delhi have almost normalised with the national capital now getting the bulb mostly from Maharashtra as supplies from Rajasthan are drying up. “As compared to 5 to 10 truck of onions we were getting about 10 to 12 days ago, we received 45 trucks of onions on Monday, all coming from Maharashtra,” said Surinder Bhuddhiraja, president at Azadpur Onion Traders Association.