Coimbatore: A survey conducted by the Domestic and Export Market Intelligence Cell (DEMIC) of Tamil Nadu Agricultural University (TNAU) has said that onion prices are likely to rise by Rs.2-4 per kg in the coming months due to poor supply from Karnataka, delayed monsoon and decreased Minimum Export Price (MEP).

The varsity has advised farmers to store small onions and sell them only during during October and November when its prices may rise.

According to the survey, if areas in Tamil Nadu including Palladam, Tirupur, Perambalur and Erode receive rainfall during harvest, the prices would rise beyond Rs.15 per kg.

"This year, onion supply from Karnataka came to an end in August itself. Farmers are getting a price of around Rs.6 to Rs.11 per kg depending on its quality", the survey added.

As per estimates by the National Horticulture Research and Development Foundation, India produced 74.51 lakh tonnes of onion from 5.28 lakh hectares in 2007-08 - an increase of 11 percent than the previous year.

However, only about 11 lakh tonnes of onions was exported during the period - a decrease of 5 percent than 2006-07.