90% of onion stocks over, hoarders could look to make a killing
Sep 19, 2013, 04.31AM IST TNN
[ Dipak Kumar Dash ]
Onion prices remained high on Wednesday even as government claimed the rates would fall in the next fortnight.
NEW
DELHI: Onion hoarders and unscrupulous traders could be looking to make
a killing over the next 15-20 days as 85-90% of the country's onion
stock is over and only 3-4 lakh tonnes remain available for consumption.
Since traders are aware of the depleting stock, and know that arrival of the kharif crop from October will ease supplies and depress prices, they seem to be trying to extract maximum profit by exploiting the current crisis.
The government on Wednesday indicated that the minimum export price (MEP) would be raised to $900 per tonne in the next couple of days from $650 to practically halt exports.
This may have only a limited impact, acting more as a market signal, as exports fell drastically this month to just 9,000 tonnes against 1.33 lakh tonnes during the corresponding period last year. "Even at a price of $650, export is unsustainable. The fresh announcement will have little impact. The government is perhaps trying to send a message to people of how serious it is to deal with the crisis," an official said.
The fresh MEP has been worked out based on the prevailing market price of onions in domestic market at an average rate of Rs 55 per kg.
Moreover, to check hoarding of pulses, oilseeds and edible oils, the Cabinet is likely to consider a proposal to extend stock holding limit on this items for one more year to ensure availability.
Onion prices remained high on Wednesday even as government claimed the rates would fall in the next fortnight and even officials of National Horticulture Research and Development Foundation (NHRDF) said they expected higher availability in southern markets would bring down the price substantially in the next 10-15 days.
"We have fresh produce coming from Karnataka, Andhra Pradesh and Tamil Nadu. The arrival quantity is increasing and it will go up. Usually by September-end, the old stocks starts drying up every year. This is for the first time we saw prices going up in July," said Hari Prakash Sharma, deputy director (statistics) at NHRDF.
He added that though the storage during 2013 has reduced marginally from 29.50 lakh tones in 2012 to 27.50 lakh tonnes this year. "The availability is not so skewed that it resulted high prices," Sharma added.
Sources said that around 15 onion contains landed at Mumbai port is likely to reach market in the next few days as the clearance of the commodity is being expedited. Moreover, the number of trucks carrying onions from Pakistan entering India through Attari border is likely to increase to 15-20 per day, which is likely to calm prices in Delhi and its neighbouring states
Since traders are aware of the depleting stock, and know that arrival of the kharif crop from October will ease supplies and depress prices, they seem to be trying to extract maximum profit by exploiting the current crisis.
The government on Wednesday indicated that the minimum export price (MEP) would be raised to $900 per tonne in the next couple of days from $650 to practically halt exports.
This may have only a limited impact, acting more as a market signal, as exports fell drastically this month to just 9,000 tonnes against 1.33 lakh tonnes during the corresponding period last year. "Even at a price of $650, export is unsustainable. The fresh announcement will have little impact. The government is perhaps trying to send a message to people of how serious it is to deal with the crisis," an official said.
The fresh MEP has been worked out based on the prevailing market price of onions in domestic market at an average rate of Rs 55 per kg.
Moreover, to check hoarding of pulses, oilseeds and edible oils, the Cabinet is likely to consider a proposal to extend stock holding limit on this items for one more year to ensure availability.
Onion prices remained high on Wednesday even as government claimed the rates would fall in the next fortnight and even officials of National Horticulture Research and Development Foundation (NHRDF) said they expected higher availability in southern markets would bring down the price substantially in the next 10-15 days.
"We have fresh produce coming from Karnataka, Andhra Pradesh and Tamil Nadu. The arrival quantity is increasing and it will go up. Usually by September-end, the old stocks starts drying up every year. This is for the first time we saw prices going up in July," said Hari Prakash Sharma, deputy director (statistics) at NHRDF.
He added that though the storage during 2013 has reduced marginally from 29.50 lakh tones in 2012 to 27.50 lakh tonnes this year. "The availability is not so skewed that it resulted high prices," Sharma added.
Sources said that around 15 onion contains landed at Mumbai port is likely to reach market in the next few days as the clearance of the commodity is being expedited. Moreover, the number of trucks carrying onions from Pakistan entering India through Attari border is likely to increase to 15-20 per day, which is likely to calm prices in Delhi and its neighbouring states
NITESH KUMAR SINGH
PGDM 1ST
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