Volume 31 December, 2014 Onion Executive Summary 5727 ha of area is sown compared to last year area of 8596 ha. All India, onion arrival in month of November is approximately 44% higher compared to previous month. If we compare onion arrivals in November month on a yearly basis we observed that arrivals are 29% higher than last year during same time. As per IBIS (International Business Information System), approximately 30320 tons of processed and fresh onion has been exported in month of November 2014 compared to previous month export of 17531 tons. As per Agriwatch estimate sowing intentions for late Kharif onion is also lower by approx 7% as compared to previous year. Late Kharif onion is expected to be around 104700 ha against previous year’s figures of 112300 ha. In Maharashtra, arrivals are approximately 17% higher compared to previous year in November month. Prices are expected to fall down further with increase in arrivals of Kharif and late Kharif seasons. In Karnataka, total Rabi area is approximately 16676 ha. As on 1.12.2014 approximately Market Average Avg. Prices Avg. Prices Change in Arrivals Previous (in % Change Trend Daily Avg. Daily Avg. Monthly Wholesale Price%(`/qtl) and Quintals) Comparison Over Previous Year Arrivals November Arrivals October % Change in Arrivals Over Previous Month 3033 -46.22 15185 11737 29.38 4.21 3115 -45.97 76500 97636 -21.65 1342 6.63 2950 -51.49 3676 7625 -51.79 1563 1427 9.53 2924 -46.55 5684 11442 -50.32 Mumbai 1656 1790 -7.49 3467 -52.24 17344 15413 12.53 Pune 1794 1708 5.04 3266 -45.07 7176 10583 -32.19 Jaipur 1670 1805 -7.48 3926 -57.46 2545 2818 -9.69 Chennai 2458 2309 6.45 4719 -47.91 4988 4622 7.92 Hyderabad 1900 1824 4.17 2214 -14.18 2195 1930 13.73 November 2014 October 2014 Prices Over Year Avg. Previous November Month (2013) Price Delhi 1631 1809 -9.84 Bengaluru 1683 1615 Lasalgaon 1431 Pimplagaon Source: Agriwatch On a month-on-month basis, prices have decreased in Jaipur, Delhi and Mumbai which are near producing regions. In rest of the markets prices have increased by 4% to 10% as Kharif crop was picking up pace during November end. Prices are expected to fall down ahead as Kharif arrivals are arriving in market full fledged. In Karnataka onion is arriving in market from local region (Chitradurga, Hubli, Dawangre and Gadag districts) has started arriving in market and expected to continue for coming months also. Monthly Report | December 2014 Market Intelligence System Monthly Average Retail Price (`/qtl) trend comparison Market State Bengaluru Bhubaneswar Chennai Delhi Guwahati Hyderabad Kolkata Mumbai Patna Karnataka Odisha Tamil Nadu Delhi Assam A.P. W. Bengal Maharashtra Bihar Average Retail Price November 2014 2100 2400 2100 3200 2500 2600 2600 3100 2100 Average Retail Price October 2014 2100 2400 2400 3300 2600 2500 2300 2900 2100 Previous Year Avg. Retail PriceNovember 2013 3700 4300 4700 5800 5400 3700 5600 6600 4600 % Change in % Change in Price Over Price Over Prev. Month Prev. Year Unch -43.24 Unch -44.19 -12.50 -55.32 -3.03 -44.83 -3.85 -53.70 4.00 -29.73 13.04 -53.57 6.90 -53.03 Unch -54.35 Source: Consumer Affairs In Retail market, prices have increased in few markets only whereas in rest market it is similar to previous year or has fallen down slightly. In coming months prices are expected to fall down with continuous and increase in arrivals. If we compare prices on a year on year basis it is observed from above table that prices are almost half of the prices during same time last year. Prices are low this year as crop is in good condition and yield is more compared to previous year. All India Onion Monthly Arrivals Harvesting Pattern of Kharif Onion in Maharashtra July August September October November Source: Agmarknet The above graph shows the monthly all India arrivals. Arrivals are higher in November month than last month because fresh arrivals from different producing regions and majorly from Maharashtra. In coming months arrivals are expected to arrive with this continuous pace. In Maharashtra, maximum Kharif crop is harvested in November month. Technical Analysis of Onion Prices at Lasalgaon, Nasik Note: Each bar or “candle” in the chart shows the price movement in a particular week. The green candle signifies prices increased and red candle signifies prices decreased in that week. The length of the “candle” shows the upper and lower end of the price range for the week. 4 Week of Dec 3 Week of Dec 2 Week of Dec 1 Week of Dec 4 Week of Nov 3 Week of Nov 2 Week of Nov 4 Week of Oct 1 Week of Nov 3 Week of Oct 0 2 Week of Oct 200 20 0.00% 1 Week of Oct 400 40 5.00% 4 Week of Sep 600 60 10.00% 3 Week of Sep 800 80 15.00% 2 Week of Sep Arrivals in ('000 MT) 1000 0 120 Cumulative% 100 1 Week of Sep 2012-13 % Harvest 2013-14 Overall % 20.00% Cumulative Harvest in % 25.00% Comparision of All India Monthly Onion Arrivals 1200 (Agriwatch survey) Harvesting starts from 2nd and 3rd week of September in few districts like Dhule, Usmanabad and Ahmadnagar where early Kharif crop is sown during mid June. Till end of October, 25-30% crop will be harvested and next 50% crop will be harvested in the month November, maximum during 4th week of November. Remaining 20-25% is expected to be harvested in the month of December. However, this could change based on price and weather conditions during November and December. The chart shows the monthly price movement of onion in the benchmark of Lasalgaon mandi of Nasik. During the month of November modal prices touched low of `1200/qtl. and trading near `1431/qtl. On the upper side prices may find resistance at a level of `1700/qtl. whereas long term support is `1000/qtl. Overall, onion prices are expected to fall further as Relative strength indicator (RSI) oscillator is moving downward in neutral region which suggest prices may fall down further may be in a range of `1000- `1500/qtl. in coming month. Monthly Report | December 2014 Market Intelligence System Potato Executive Summary In U.P., potato area is expected to be 2-3% higher compared to previous year. Fresh crop which is also called “Kachha Aloo” has started arriving in market from, Kannauj, Farrukhabad and Meerut regions. In M.P, fresh potato has started arriving in market along with stored crop from U.P. Fresh crop varieties are Atlanta, surya and FC3 which are picking up pace. In West Bengal, sowing is almost completed with 10% higher area compared to previous year. Early fresh crop is expected to start in next 10-15 days. In Karnataka, targeted area for Rabi season is 9855 ha. As on 1-12-2014 approximately 3107 ha of area is sown compared to last year 2967 ha during same time. Kolar is major producing region which is approximately 45% of total targeted area. Odhisa state civil supplies corporation has formed a committee to ensure a buffer stock of 3 lakh MT to overcome the potato crisis during August – November month. Across the country potato prices has start declining in most of the markets as fresh crop from, Punjab and U.P. has started arriving in market and further arrivals are expected to increase. Monthly Wholesale Price Trend in Different Producing & Consuming Centers Market November 2014 October 2014 Avg. Wholesale Avg. Wholesale Price (`/Qtl)Price (`/Qtl)(Fresh Potato) (Fresh Potato) Delhi 1878 2102 Khandauli (Agra) 1938 1914 Farrukhabad 1838 2267 Ludhiana 1722 1800 Kolkata 2024 1802 Jaipur 1830 1916 Mumbai 2327 2255 Bengaluru 2325 2236 Tarkeshwar 1871 1739 November 2013 Avg. Wholesale Price (`/Qtl) 1418 1504 1426 1210 1213 1376 1741 1703 1142 Absolute % Change Over % Change Over Change Over Prev. Month Prev. Year Prev. Month (`/Qtl) -224 -10.66 48.24 24 1.25 27.26 -429 -18.92 58.98 -78 -4.33 48.76 222 12.32 48.56 -86 -4.49 39.24 72 3.19 29.52 89 3.98 31.30 132 7.59 52.28 Source: Agriwatch The above table shows the monthly average prices of major markets and variation of prices with previous month and year. In most of the markets mixed variation of prices is seen. Prices are expected to fall down further as fresh crop from U.P. is picking up pace. If we compare the prices with previous year during same time it is observed that prices are comparatively higher than last year because of lower storage and crop damage last year. But in this Rabi season prices are expected to remain stable. Monthly Retail Price (`/qtl) and arrivals (Tons) trend in different Consuming Centers: Market Nov. 2014 Oct. 2014 Previous year % Change % Change Total Arrivals Total Arrivals Total Arrivals Avg. Retail Avg. Retail Avg. Retail in Price in Price Over in Nov. 2014 in Oct. 2014 in Nov. 2013 Price (`/qtl)- Price (`/qtl)PriceOver Prev. Prev. Year (in qtl )* (in qtl )* (in qtl )* (Fresh Potato) (Fresh Potato) Nov. 2013 Month Bengaluru 2700 2600 3000 3.85 -10.00 160525 167300 255000 Chennai 2900 3000 3000 -3.33 -3.33 53600 50400 53300 Delhi 3300 3600 3000 -8.33 10.00 601400 462600 705400 Guwahati 2800 2700 2300 3.70 21.74 31200 20920 29600 Hyderabad 3500 3200 3000 9.38 16.67 18700 32550 30810 Mumbai 3200 3100 2600 3.23 23.08 269250 248100 249250 Ranchi 3000 2600 2000 15.38 50.00 49750 51900 28510 Source: *Agriwatch Monthly Report | December 2014 Market Intelligence System Retail prices are higher in almost all the markets except Chennai and Delhi. Prices are higher as fresh crop from U.P. is just picking up pace and expected to fall down ahead as arrivals are expected to increase. If we compare on a year on year arrivals are lower in few markets as it is clearly visible in above table. All India arrivals in month of November is approximately 20% less compared to previous year during same time. Technical Analysis Potato Spot Market (Khandauli, Agra) Note: Each bar or “candle” in the chart shows the price movement in a particular month. The blue candle signifies prices increased and red candle signifies prices decreased in that month. The length of the “candle” shows the upper and lower end of the price range for the week. The above chart shows the monthly price movement of potato for Agra (Khandauli) market. Modal prices are trading approximately `1938/qtl. On the higher side prices may find long term resistance at a level of 2250/qtl. On the lower side prices may find long term support at a level of `1800/qtl. As per Fibonacci retracement indicator prices may touch a level of `1800/qtl on lower side and may breach this level to `1500/qtl in next one month. Disclaimer The information contained in this document has been compiled by Agriwatch from sources believed to be reliable, such as NHB, Agmarknet, etc. and directly from traders in mandis. However, users of this data are requested to use the information with due caution and crosscheck with other sources. This document is not, and should not be construed as an offer to sell or buy any commodities. This document may not be reproduced, distributed or published without the express consent of SFAC. Report Produced by: Report Prepared by: SMALL FARMERS’ AGRIBUSINESS CONSORTIUM Indian Agribusiness Systems Pvt. Ltd. NCUI Auditorium Building, 5th Floor, 3 Siri Institutional Area August Kranti Marg, Hauz Khas, New Delhi – 110016 Tel: (011) 26862365, 26966017 | Fax: (011) 26862367 Email: sfac@nic.in | Web: www.sfacindia.com H–128, First Floor, Sector 63, Noida – 201 301, India Tel: (0120) 4618100 | Fax: (0120) 4618118 Email: services@agriwatch.com | Web: www.agriwatch.com
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