Onion provides are likely to ease as soon as kharif arrivals begin from October, main to softening of prices. Image for illustration function solely. File
| Photo Credit: Vijay Soneji
Onion prices are likely to begin capturing up in the retail market in direction of the top of August earlier than going up additional to round ₹60-70 per kg subsequent month due to tightened provides, a report stated on August 4.
However, the prices will stay under the highs of 2020, it stated.
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“The supply-demand imbalance is expected to reflect in onion prices towards end-August. As per our ground interactions, prices are expected to show significant increase from early September in the retail market, reaching up to ₹60-70 per kg during the lean patch. However, prices will remain below the highs of 2020,” in accordance to the report by Crisil Market Intelligence and Analytics.
The report said that owing to lowered shelf lifetime of rabi onion by 1-2 months and panic promoting in February-March this yr, rabi shares in the open market are anticipated to decline considerably by the top of August as a substitute of September, extending the lean season by 15-20 days, which is likely to expose the market to tightened provides and excessive prices.
Onion provides will ease as soon as kharif arrivals begin from October, main to softening of prices, the report stated.
The worth motion in the festive months (October-December) is anticipated to stabilise, the report said.
During the January-May interval this yr, a fall in onion prices provided some aid to shoppers dealing with considerably costlier cereals, pulses and different greens.
However, this created a adverse sowing sentiment amongst onion farmers for the kharif season.
“As a result, we expect acreage to decline 8% this year, and kharif production of onion to fall 5% year-on-year. Annual production is expected at 29 million tonnes (MMT), 7% higher than the average of the past five years (2018-2022),” stated the report.
So, a significant provide crunch is unlikely this yr regardless of decrease kharif and rabi output. However, rainfall in August and September will decide plantation and bulb improvement of the onion crop, it added.
