Hold tight as we dive into the onion market, where prices keep rotating like a spinning top. According to market veterans, the government has initiated onion procurement from Maharashtra, but increasing the cost is proving to be a tough nut to crack.
Onion procurement by NAFED and NCCF has commenced in Nashik. However, the impact on the market will likely be insignificant due to a flawed government strategy. 14 FPOs are conducting procurement through two agencies based on the average price of the last two days.
For farmers, the cost of onion production amounts to $0,36 per kg. To ease their burden, farmer organizations demand that NAFED purchase onions at a minimum price of $0,24 per kg. Nashik faces a challenge as 50% of the onion crop has been damaged by incessant rains and adverse climate conditions. The remaining stock, crucial for the season, requires adequate government purchases to alleviate the farmers’ plight. Bangladesh’s recent decision to open the onion import gate might lead to significant exports from India. This could provide some respite to the market. Furthermore, early indications suggest delayed and low sowing of monsoon onions.
The onion crop stock in Saurashtra is substantial, but defects have risen due to continuous rains and unfavorable climate conditions. The market will witness a mix of goods and weak goods, leading to an anticipated range-bound price movement. Market veterans predict a long-term boom in high-quality onions. Although this year’s crop suffered, interests will continue to arrive until the season’s end, hinting at a potential upswing. As the onion market experiences a whirlwind of change, prices bob and weave, and arrivals continue.
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