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Wednesday, November 24, 1999

Onion prices crash as old stock arrives

EXPRESS NEWS SERVICE  
PUNE, Nov 23: Prices of onion have crashed with the sudden entry of the old stocks into the market during the festive Diwali season. The entry of around three lakh tonnes of the old stock of onions in the market have brought prices crashing down from Rs 550 per quintal to Rs 200 per quintal in Lasalgaon, a prominent onion trading centre at Nashik.

The effect has trickled down to the other centres. The situation is similar in Pimpalgaon and Baswant which has seen the arrival of more than 400 tractors per day. The prices of Halvi crop of onions has come down to Rs 300 to Rs 350 per quintal from Rs 550 to Rs 600 per quintal.

Around 150 to 175 trucks of the old stock have arrived in Mumbai bringing the prices down to Rs 350 to Rs 400. The position is a little healthier in Pune where prices of the old stock is pegged at Rs 400 per quintal while the new crop has come down to Rs 300 per quintal.

Pravin Raysoni, president of the Pune Onion and Potato Purchasers Association, said that the prices would continue to crash further unless the government lifted the ban on the export of onion. With a bumper crop expected in December, he predicted that prices would crash to an all time low of Rs 150 per quintal unless the government took steps to stem the rot.

The association will be holding a meeting to chalk out a detailed action plan. Market sources also hinted at the possibility of the closure of markets if the government did not pay heed to the demand of the onion growers and traders.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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