Source: Business Standard
Maharashtra and Karnataka, the two states that together produce around 45 per cent of India’s onion crop, reported severe water shortage this year. Sowing was delayed by a couple of months, resulting in low arrivals in the market now. This has kept prices rising and staying firm. In the week ending December 15, the largest onion mandi, Lasalgaon in Maharashtra, saw a 145.19 per cent rise in modal price over the last year.
Wholesale prices in Mumbai increased from ~900 a quintal on June 14 to ~1,600 on December 14. NCAER estimates a 20 per cent drop in onion output for 2012-13, while domestic as well as export demand for Indian onions will remain strong. Consequently, pressures on onion prices are expected to continue. Indicus Price Monitor (IPM) data is till week ending December 15. IPM is a product of Indicus Analytics Pvt Ltd, tracks real-time wholesale prices for 62 agricultural products from around 3,000 mandis across the country. Due to differences in methodology, the actual levels of IPM differ from the corresponding Wholesale Price Index. However, broad trends are in sync with each other.(See Graphic)