Retail prices of onions fall marginally, traders in Indore remain skeptical

Onion prices on Saturday came down marginally in the retail markets in Indore due to a fall in wholesale prices. The district administration too cracked down on hoarders a few days ago and seized about 5,000 tonnes of onions from warehouses.

Onion prices on Saturday came down marginally in the retail markets in Indore due to a fall in wholesale prices. The district administration too cracked down on hoarders a few days ago and seized about 5,000 tonnes of onions from warehouses.

An onion shop at Indore Mandi on Sunday. Onion prices have gone up more than threefold in the past fortnight. (Shankar Mourya/HT)

Onions are now selling for Rs 50-60 per kg in retail markets as compared to Rs 60-70 last week.

However, traders say onion prices will remain high until September end when new crop will start arriving in the market.

“Onion prices have come down a bit due to increase in supply, but are expected to remain high for at least a month,” wholesale trader Murli Sharma said. Currently, about 200 tonnes of onions arrive at Indore mandis daily.

Onion prices have shot up more than three-fold in the last fortnight. While good quality onions are available at Rs 60 per kg at wholesale markets, inferior quality onions go for Rs 40-50 per kg. Going by past experience, some profiteering by the middlemen and hoarding by the traders has not been ruled out.

Sharma, however, denied that there was any hoarding. “The moisture content at this time of the year is high, so onions can’t be stored for a longer duration. Prices have gone up due to crop damage in Maharashtra,” he said.

Total production in 2014-15 has been estimated at 18.92 million tonnes compared to previous year’s 19.40 million tonnes. New crop from Maharashtra, Rajasthan and southern states is expected to hit market from September end or early October.