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Onion prices to rule around Rs. 800-1000 per quintal by harvest in Belgaum market

India is the second largest producer of onions in the world after China, with over
15 million tonnes production in 2011-2012. Maximum onion production takes place in
Maharashtra (49.05 lakh tons) state followed by Karnataka (25.92 lakh tons), Gujarat
(15.141 lakh tons.), Bihar (10.82 lakh tons.), Madhya Pradesh (10.21 lakh tons.) and
Andhra Pradesh (8.12 lakh tons). In Rajasthan, Haryana and Uttar Pradesh it is grown to
some extent. The quality of Karnataka onion is better in view of mild climate which
prevails almost round the year there. Export of onion from India has increased from 10
lakh tons in 2007-08 to 13 lakh tons in 2011-12, an increase of around 30% in over the
period has been recorded.
Onion is an important vegetable crop which is often and extensively used in many
Indian dishes. At the same time it is the crop which experiences the high volatile prices
because of the market forces and gambling of traders in marketing of this crop. In this
regard, in order to help the farmers to take better sowing decision and to save them from
distress sale of the commodity, Domestic and Export Market Intelligence Cell,
Department of Agribusiness Management, University of Agricultural Sciences, Dharwad
has taken up a study to analyze the behaviour of prices of onion crop.
For determining the future prices, monthly modal price of onion for the past 16
years were gathered from Belgaum regulated market which is one of the lead markets of
onion in North Karnataka. These data were subjected to rigorous time series analysis by
employing different models and at what prices the Onion would trade during August-
September 2013, were also established. These data were subjected to rigorous time series
analysis by employing different models. The prices from the other major markets, import
and export scenario and the future prices being announced by the National Commodities
and Derivatives Exchange of India (NCDEX) were also considered. The output prices were verified and fine tuned with the opinion of the traders, agricultural scientists and
progressive farmers.
According to Domestic and Export Market Intelligence Cell (DEMIC) experts,
the prices of Kharif onion would prevail at Rs.900-1000 per quintal during August and
Rs.800-900 per quintal during September, 2013. Well dried, uniform sized, clean and
round bulbs fetch better prices in the market. Hence, farmers are advised to keep these
things in mind while cultivating and preparing the produce to the markets

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Please note that this is the opinion of the author and is Not Certified by ICAR or any of its authorised agents.