This month, wholesale onion prices are 25% to 30% higher than in January. Prices of pulses and bulk edible oil have also been helped by government measures to increase farmers’ income, such as import restrictions and purchases at support prices.
Retail onion prices are ruling between Rs 30 and Rs 70 per kg in different markets of the country.
Lentil (Masur) and Urad Daal prices have increased by 10% compared to January, while tur prices have jumped by 20% during the same period. Wholesale edible oil prices have increased from 30% to 60% for various oils this year.
Trade experts said that the loss of yield from excessive rains has led to an increase in prices of onions and pulses. While edible oil prices have been ruling at an all-time high due to declining international supply chains. They said prices for onions are not expected to cool for at least a month and for edible oils by June / July.
“Due to international factors, edible oil prices are expected to remain strong by the end of March,”
– said BV Mehta, executive director of industry association Solvent Extractors Association of India (SEA).
As per data compiled by SEA, the year-on-year increase in wholesale prices for February was 36% for refined soybean oil, 39% for refined cotton oil, 43% for refined rice bran oil, 68% for refined sunflower oil, And 29% for refined peanut oil.
From January to February, month-on-month increased edible oil prices are 5% for refined oil, 3% for refined soybean oil, 5% for refined rice bran oil, 10% for refined sunflower oil and 5% for refined peanut oil.
Rapeseed oil prices are down 45% year-on-year and 2% month-on-month. Refined palm oil prices have risen 53% year-on-year and 11% month-on-month.
For the first time, wholesale onion prices are ruling at a high of Rs 40 / kg in the month of February at Lasalgaon APMC (Agricultural Produce Marketing Committee), the largest wholesale market of onions in the country.
Retail onion prices are ruling between Rs 30 and Rs 70 per kg in different markets of the country.
“The excessive rainfall during and after the monsoon season damaged the nurseries of onion, reducing the per acre productivity of the crop,”
-said Danish Shah, a Maharashtra-based onion exporter. He further added
“Inferior quality seeds also resulted in reducing the production of kharif and late kharif crop.“
Shah said-
“The arrival of rabi onion will only increase after mid-March, while the prices will remain stable till the end of March.”
The erratic weather has also affected the yield of tur (pigeon pea), resulting in a jump of at least 20% in the price or whole unpolished tur.
“The ex-mill tur prices are around Rs 100/kg and are expected to move upward as the arrivals are tepid,”
-said Nitin Kalantry, a processor of pulses from Maharashtra.
Central government policies have helped the government to support the prices of pulses, without the need to purchase large quantities to ensure that farmers receive the Minimum Support Price (MSP).
Masur prices have increased by 10% in February compared to the previous month, while Urad prices have increased by 4% during the same period.
“There will be no new import of pulses till March,”
-said Rahul Chauhan, director of commodity market research firm IGrain India. He further added
“Urad prices will remain strong until June as the crop in neighbouring Myanmar is lower than moong in the Urad region to meet China’s demand for moong.“
