Coimbatore: A delayed monsoon, reduced supply from Karnataka and a decrease in minimum export price could push onion prices up by Rs2-4 per kg in the coming months, according to a study by the Tamil Nadu Agricultural University.
The study conducted by the domestic and export market intelligence cell of the university aims to answer farmers’ queries on whether current arrivals would fetch higher prices, and if they should sell or store the small onions harvested recently.
The study advised farmers to store small onions and sell them during October-November when prices are expected to rise.
If there is rainfall in Palladam, Tirupur, Perambalur and Erode areas in Tamil Nadu during harvest, prices would increase beyond Rs15 per kg, it said.
Arrivals from Karnataka have come to an end this year in early August itself, and currently farmers are getting Rs6-11 per kg depending on the quality of onion.For the next three months prices would hover between Rs8 and 15 per kg, the study said.
A reduction in the minimum export price (MEP) will also make onion costlier in the domestic market, the study said.
The Union government has cut the MEP for small onion from $450 (Rs19,665) a tonne in July to $360 in August to encourage exports. The study said a drop in MEP would push onion prices further up.