Govt intervention stabilises onion prices
The prices of big onions at the Dambulla Dedicated Economic Centre (DDEC)
picked up on Thursday after the Government intervened in purchasing
stocks. The harvesting of big onions is now underway and farmers have
received a bumper harvest this year but they are worried as prices have
The wholesale price of big onions at DDEC has dropped below Rs. 40
per kg and farmers said that they cannot sell at such a low price
because the cost of production is over Rs.35 per kg.
A farmer, W.M.Tharanga of Kandalama, one of the main big onion
growing areas, said that they expect a price of over Rs. 60 per kg.
By mid last week the price was picking up and on Wednesday the price
was around Rs. 40 and on Thursday it increased to Rs. 52-55 as supplies
The chairman of H6D2 farmer organisation, Anuradhapura said that
after government agencies intervened to purchase big onion at Rs. 60 per
kg on Wednesday, the price at the DDEC too increased.
The farmer organisation expects the price to increase further and
called upon the farmers not to bring all their stocks to the market at
Since trading at DDEC is highly competitive, price depends on supply.
Since the weather is dry there is no problem in keeping the stocks, he
said. “This is the same scenario that has been happening every year
during the harvesting season of agro products such as paddy, potatoes,
vegetables and big onions and farmers suffer losses," a market analyst
said. "The potato farmers in Welimada and Nuwara Eliya face the same
fate these days as prices have declined. The government intervention in
purchasing has little impact because a large quantity of imported
products are coming into the market,” he said.