Blog

Onion Market Rate: Is Onion Really Booming or is it a Trick of Traders?

click here to know more:

In recent days, the onion market across India has seen significant fluctuations. Over the past two days, market prices surged by Rs 300 to Rs 500, only to drop by Rs 300 again. Farmers are worried about the fluctuations as they are unable to get an idea about future price trend. Also, they are unclear whether this is a presentiment of a price boom or just a middlemen gimmick?

Read further for clarity:

This volatility has been a recurring theme over the last four to five days. At their peak, onion prices reached Rs 2,500 to Rs 2,800 in many markets. However, since yesterday, prices have plummeted by Rs 300.

These fluctuations are particularly evident in the southern markets, with traders indicating similar trends across the country. Farmers believe this volatility is a gimmick by traders and middlemen to manipulate market prices and increase their profits. Couple of days ago, receipts showing prices of Rs 3,400 to Rs 3,500 were circulating on social media, sparking discussions about a significant price hike. Once again, onions are making headlines, with the typical concerns about high prices impacting the economy. But just as quickly as prices rose, they fell again by Rs 300 within two days, fuelling further market speculation.

Rain or Trading Game?

The recent rains have also impacted the onion supply, leading to lower market arrivals. Some farmers argue that traders artificially increased prices for a couple of days to boost their income. They also claim that the receipts circulating on social media were trader-owned goods. On the other hand, traders assert that the price surge in the southern state, where onions hit Rs 3,500, influenced prices in other regions, pushing them to Rs 2,500 to Rs 2,800. Now, with prices declining again over the past two days, traders deny any manipulation, attributing the fluctuation to normal market dynamics. They insist that the price changes are not connected to the arrival of onions in the market or any deliberate moves by traders.

Drop in onion produce:

This year, onion production has decreased, contributing to the price fluctuations. Historically, reduced production has kept prices slightly higher. Most farmers sold onions at Rs 1,200 to Rs 1,500, which are now controlled by traders and stockists. This year, the quantity of onions from farmers has also decreased by 20 to 30 percent. To know more about effective organic fertilisers to increase your onion yield, please visit: https://khetigaadi.com/or call KhetiGaadi on 07875114466 or write an email to connect@khetigaadi.com

Given the lower availability, the 40 percent duty on exports, and a minimum export value of $550, onion prices remain between Rs 2,000 to Rs 2,300 despite reduced exports. Traders and analysts predict that prices may continue to fluctuate by Rs 500 depending on market inflows and outflows.

Stay tuned with us on our telegram channel / whatsapp channel for more real time updates on market rates and price trends of various crops and various government schemes aimed at supporting our hardworking farmers.

For more detailed information, visit https://khetigaadi.com/ regularly!