Onion prices fall on increased arrivals

MUMBAI (Reuters) - Onion prices, which had shot up sharply last month, have fallen due to increased arrivals, traders and officials said.

"Arrivals have increased in all major markets. Prices have to react," said C.B. Holkar, chairman of National Agricultural Cooperative Marketing Federation of India (NAFED).

Wholesale prices in the country's largest onion trading hub, Lasalgaon in Maharashtra, fell to 686 rupees per 100 kg on Tuesday, from a peak of 1,951 rupees on October 1.

In a week, prices have fallen 22 percent in Lasalgaon.

Last month, the government made it mandatory for exporters to obtain an export licence from the Director General of Foreign Trade (DGFT) and a no-objection certificate from canalizing agencies.

However, this month the government once again allowed exports without DGFT licence, but supplies have piled up since exports last month were neglible, traders said.

"There will be more arrivals in coming weeks. Prices may go down further by 100 rupees per 100 kg," said a trader based in Nashik, a main growing region in the country.