The sharp rise in onion prices across the country, due to supply disruptions, is expected to moderate shortly, thanks
to the sufficient stocks available from the rabi crop. An early kharif crop is also likely to improve supplies by next month.
Traders from Nasik said that wholesale prices of the agricultural commodity have been around R1,800 per quintal and stocks are enough to meet demand during the next two months.
?Supplies have been disrupted to an extent because of rains in the key growing regions of Maharashtra, which has pushed up prices,? a trader from Nasik told FE. The trader said there may be a slight increase in prices during the next few weeks before the kharif crop arrives.
At present, the domestic demand is met through stored onions from the summer crop. This year, a robust summer output from MP and Rajasthan has helped.
Retail onion prices have risen sharply since June in key metros and the sharpest rise has been witnessed in Bangalore and Delhi.
?Kharif crops are expected to enter the market from the middle of August from Andhra Pradesh, Tamil Nadu and Karnataka. Supplies from Maharashtra would enter the market by October,? said CB Holkar, board member, Nafed.
In 2012-13, annual onion production was more than 15.5 million tonne (mt).
Meanwhile, the export of onion is on as the country annually ships 10-15% of its total produce.
