Onion prices could rise by 20%, say traders | india | Hindustan Times
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Onion prices could rise by 20%, say traders

india Updated: Sep 21, 2011 00:34 IST
G. Mohiuddin Jeddy
G. Mohiuddin Jeddy
Hindustan Times
G. Mohiuddin Jeddy

There was jubilation at the wholesale Agriculture Produce Market Committee (APMC) at Vashi, on Tuesday, after the ban on onion export was lifted.

While traders agreed there would a price hike of around 20%, they also warned people to avoid panic buying to ensure the hike is minimal.

The onion traders at APMC had shut the market on September 16 for two hours to demand the lifting of the ban. They had also threatened to go on an indefinite strike if the Centre did not act fast.

Welcoming the lifting of the ban, APMC director Ashok Walunj said, "The farmers have stocked up on their produce and now they will get a good price for it. The produce should start coming to the market in a couple of days."

"The supply to the market had gone down drastically to 60 vehicles a day. We should be back to the average 125 vehicles very soon," Walunj added.

Confirming that there will be an increase in the price, Ashok Karpe, an onion wholesaler said, "As of now the retailers have good stock and hence there would not be an immediate change in the prices. The prices will increase by Rs 2-3 by the weekend."

"In the wholesale market, it will cross the Rs15 per kilo mark, while in the retail market it will be over Rs 20 per kg. Good quality produce could even go up to Rs 25 per kg," Karpe added.

Sanjay Pingle, a wholesale trader warned against panic buying and said, "The sudden spurt will push up the prices. Last year, a section of the media said prices would touch Rs100 per kg and hence people bought onions for as high as Rs50 per kg. Such a situation should be avoided."

"The over all situation will be clear in a couple of days. We also need to know if there are any conditions that the government has set for lifting of the ban. If there are limits on the export then the decision will not make much of a difference," Pingle added.