Shallots turn cheaper at Dindigul market

Price reduces by Rs.15 a kg in three days owing to poor quality

May 21, 2015 12:00 am | Updated May 23, 2016 06:59 pm IST - DINDIGUL:

Prices of small onion (shallot) in Dindigul wholesale market, one of the biggest markets in the state, crashed here on Wednesday in three days, thanks to heavy rain in the last one week and sharp slump in exports.

The market has been receiving just 50 per cent of its routine arrival this week. Normally, prices of onion will shoot up during poor arrival. Price of shallot reduced by Rs.15 a kg in three days owing to poor quality and less off take by exporters. However, steady demand in local market prevents further fall in onion price.

At present, the market has been receiving 2,500 bags of small onion from Udumalpet, Dharapuram, Thuraiyur and Namakkal.

Heavy rain ravaged fields damaging onion at harvest stage. Poor quality onion was left for exports.

Exporters will not prefer such onions as they have less shelf life.

The prices of small onion that were hovering between Rs.20 and Rs.46 two days ago, fell to Rs.15 and Rs.30 a kg now, depending on quality and size.

The existing trend will not change till first week of June as the market will get fresh arrivals from Mysore only during mid June. Arrival from Mysore will bring down the prices further.

Now, summer shower is the biggest threat to small onion.

Traders feel that exports will not pick up in near future as China, Sri Lanka, Taiwan and Thailand have started producing small onion and dumping their produce in south Asian countries at much cheaper prices. Price of onion supplied by foreigners at their door step was almost equal to the wholesale price prevailing in Dindigul market.

Indian onions have become costlier when exporters add freight and shipment charges.

The traders also doubt about arrival of fresh onion from Mysore in June as south west monsoon is expected to advance in the west.

Rain at the harvesting stage will affect crop quality. The ensuing rainy season will be a disaster to onion crop, say traders.

The scenario of no rain, in the last 48 hours, has improved arrival of onion to the market. However, quality was not good. Last week, the market had received 1,500 bags.

The trend may change by this year end. Arrival from Dindigul, Tirupur, Theni, Erode and Coimbatore districts will start in November. Onion produced within the district will also hit the market after November. Ultimately, the market will face the glut, they add.

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