India is projected to grow at 6.2 per cent in 2024, supported by robust domestic demand and strong growth in the manufacturing and services sectors, according to the United Nations.

 

The UN World Economic Situation and Prospects (WESP) 2024 report, released on Thursday, said that gross domestic product in South Asia is projected to increase by 5.2 per cent in 2024, driven by a robust expansion in India, which remains the fastest-growing large economy in the world.

 

'Growth in India is projected to reach 6.2 per cent in 2024, slightly lower than the 6.3 per cent estimate for 2023, amid robust domestic demand and strong growth in the manufacturing and services sectors,' said the report.

 

India's GDP is projected to increase to 6.6 per cent in 2025. The report notes that economic growth in India is projected to remain 'strong' at 6.2 per cent this year mainly supported by resilient private consumption and strong public investment. While manufacturing and services sectors will continue to support the economy, erratic rainfall patterns will likely dampen agricultural output, it added.

 

'Indian economy again outperformed its peers, not just this year but the last few years,' Chief of the Global Economic Division Monitoring Branch, Economic Analysis and Policy Division (UN DESA) Hamid Rashid told reporters.

 

He said that India's economic growth has consistently remained over six per cent and 'we believe this will continue in 2024 and 2025 as well.'

 

He said that although inflation was relatively high for India, it didn't have to raise rates as much and inflation has come down quite a bit.

 

'That has allowed the government to sustain the fiscal support that it needed,' he said adding that 'we didn't see significant fiscal adjustments or fiscal retrenchment in India.

 

'Overall, domestic consumption is growing, household spending has grown, employment situation has improved quite a bit. So we are very optimistic about India's growth outlook in the near term,' he said.

 

In response to a question on factors holding back India's economic growth, Director of the Economic Analysis and Policy Division Shantanu Mukherjee cited India's GDP growth rates of four years from 2022-2025 and said: 'I'm not sure that 7.7%, 6.3%, 6.2% and 6.6% is exactly holding something back.'

 

'In a kind of abstract sense, one would run the risk of overheating an economy if you grew at much faster rates at the size and complexity of India,' he said.

 

Mukherjee noted that the Indian government has recently modified its tax collection systems and 'those have also certainly helped and given a more stable playing field for businesses and other initiatives to progress.' Highlighting risks facing the economy, he said some of those risks are more global in nature.

 

'India still remains a very largely farm-based economy in many senses. And being in the tropics, it is very vulnerable to climate change. El Nino is a recurrent phenomenon but exacerbated by climate change. So should there be a shock to agricultural production, this could cause a major disruption in the economy.'

 

Mukherjee said that while he doesn't anticipate such a shock, 'but should there be one, this could be problematic.

 

'One of the reasons that the consumer price index in India remained relatively within bounds, allowing the central bank to not raise interest rates too much, was that food prices and fuel prices remained relatively stable. So any shock on those lines would boomerang through the economy,' he said.

 

Consumer price inflation in India is expected to decelerate from 5.7 per cent in 2023 to 4.5 per cent in 2024, staying within the two to six per cent medium-term inflation target range set by the Reserve Bank of India.

 

'The risk of a surge in inflation in the coming months cannot be ruled out, however, as potential increases in commodity prices and the adverse impact of climate events on food prices could disrupt the pace of disinflation,' the report said.

 

The labour market situation in South Asia remained fragile in 2023 despite improvements in some countries.

 

In India, labour market indicators improved over the year, with labour force participation increasing in August to its highest rate since the onset of the pandemic, the report said, citing the Reserve Bank of India.

 

The unemployment rate averaged 7.1 per cent in September, the lowest value in a year, with unemployment in rural areas falling despite weaker monsoon rains. Youth unemployment rates declined significantly during the first quarter of 2023 to the lowest value since the pandemic, it said.

 

The report also noted that the Reserve Bank of India has been cautious about opening the country's financial markets and has been implementing appropriate risk management systems.

 

The UN said global economic growth is projected to slow from an estimated 2.7 per cent in 2023 to 2.4 per cent in 2024, trending below the pre-pandemic growth rate of three per cent.

 

This latest forecast comes on the heels of global economic performance exceeding expectations in 2023. However, last year's stronger-than-expected GDP growth masked short-term risks and structural vulnerabilities, it said.

 

The better-than-expected performance for 2023 is chiefly driven by several large economies, notably the US but also Brazil, India and Mexico, Mukherjee told reporters.

 

The UN's flagship economic report presents a sombre economic outlook for the near term. Persistently high interest rates, further escalation of conflicts, sluggish international trade, and increasing climate disasters, pose significant challenges to global growth.

 

The year '2024 must be the year when we break out of this quagmire. By unlocking big, bold investments we can drive sustainable development and climate action, and put the global economy on a stronger growth path for all,' UN Secretary-General Antonio Guterres said.

Indonesia has sought 900,000 tonnes of onions from India amid the ban on exports, a top Indian government official said. This assumes significance as Indonesia is India’s largest trade partner in Asean, and imports onions mostly from the US, India and New Zealand.

 

The request comes after India imposed a 40% export tax on onions last August, followed by a minimum export price of $800 per tonne in October, to stabilize domestic supply and prices due to a crop shortfall. Despite these measures, high prices led to a complete export ban in December, effective until the end of the 2023-24 financial year.

 

India accounts for about a fourth of the global onion output and is the largest exporter after the Netherlands and Mexico.

 

In April-October of the ongoing financial year, India exported 1.4 million tonnes (mt) of onions, including 36,146 tonnes to Indonesia. During the corresponding period of FY23, it exported 1.35 mt of the kitchen staple. In FY23, India’s onion export totalled 2.5 mt, including 116,695 tonnes to Indonesia, according to data from the commerce and industry ministry and exporters.

 

'The Embassy has not received any information on this issue. Factually, Indonesia is also a producer of onion, particularly small size red onion. In 2023, Indonesia has imported onion with total of 194,107 tonnes, and out of this, total import from India is only 79,000 tonnes,' the Indonesian embassy in New Delhi said.

 

Queries sent to the spokespeople of consumer affairs, food & public distribution and commerce and industry ministries remained unanswered till the time of publishing this story.

 

'After the export ban, our containers were detained at the port gate. We have requested the government to allow the export of containers which have been cleared by customs,' said Sanket Hoge, a Mumbai-based agri export consultant.

 

'The exporters sold onion at Rs.20 a kg in the local market after paying Rs.45 for crops, packing, labour, stuffing, transport freight, clearance charges, and sea freight. Around Rs.25 per kg losses are faced by the exporters for each container,' he said. Exporters also suffered heavy losses at the Bangladesh border.

 

Production challenges, including erratic rains and extended dry spells, have impacted onion output in the kharif and late kharif (monsoon sowing) seasons. This led to a sharp decline in cultivation area and production, intensifying the political debate ahead of the national election.

 

On Wednesday, the average retail price of onion was at Rs.41.12 a kg, 49.6% higher than the previous year, according to official data.

 

Onion cultivation area declined nearly 96% year-on-year to 8.6 million hectares (mh) in top grower Maharashtra in the 2023-24 kharif season. Production of the vegetable fell 94% year-on-year to 750,000 tonne in the state.

 

In Karnataka, the second largest grower, acreage shrank by about 75% to around 11 mh and production by 43.3% from the previous kharif season to 770,000 tonnes, according to agriculture ministry sources.

 

As per the government’s preliminary assessment, India may have produced 3 million tonnes (mt) and 1.5 mt of onion in the 2023-24 kharif and late kharif seasons, respectively. This is significantly lower than the 4.1 mt and 2.4 mt produced in the respective seasons last year.

 

In the previous rabi season, onion production stood at 24.6 mt. Average monthly domestic consumption was 1.4-1.7 mt, but that may be lower now depending on the price.

 

In the 2022-23 crop year, India had produced 30 mt of onions.

 

'If we look at the data of the last few years, onion farmers have been suffering losses. Despite unseasonal rains, hailstorms and the current drought, the farmers are standing strong, making their way through the conflicting conditions,' Hoge said.

 

Farmers borrow from banks or cooperative societies for crop cultivation, but in the last few years, the debt burden on farmers has increased significantly, he said. 'The central government did not give any direct subsidy when onions were being sold at Rs.2 per kg. However, the government intervenes regularly to control rising market prices,' Hoge added.

 

The absence of exporters from markets due to the ban has depressed onion prices, with further declines anticipated in the coming days.

The government on Wednesday notified exports of 8,606 tonnes of raw cane sugar under the tariff-rate quota (TRQ) scheme to the US for the fiscal year 2024. Shipments under the TRQ enjoy relatively lesser customs duties. After the quota is reached, a higher tariff applies to additional imports.

 

'The quantity of 8,606 MTRV raw cane sugar to be exported to USA under TRQ scheme from 01.10.2023 to 30.09.2024 has been notified,' the Directorate General of Foreign Trade (DGFT) said in a public notice.

 

India, the world's second-biggest producer and the largest consumer of sugar, has a preferential quota arrangement for sugar export with the European Union as well. The DGFT said that the quota will be operated by Agriculture and Processed Food Products Export Development Authority (APEDA).

 

In July 2023, the Office of the U.S. Trade Representative (USTR) had announced the country-specific (including from India) and first-come, first-served in-quota allocations of the TRQs on imported raw cane sugar, refined and specialty sugar, and sugar-containing products for Fiscal Year 2024 (October 1, 2023, through September 30, 2024).

TRQs allow countries to export specified quantities of a product to the United States at a relatively low tariff, but subject all imports of the product above a pre-determined threshold to a higher tariff.

 

With the demand for cashew remaining robust, the markets – both domestic and global – have remained vibrant in 2023, driven mainly by the growing popularity of the commodity as a health-conscious snack choice.

 

The rising awareness of nutritional benefits of cashew, particularly in western markets, has augmented the sales, especially when the consumers are opting for healthier snack alternatives. However, the demand was also subject to fluctuations due to the residual impacts of the Covid pandemic, which affected consumer spending patterns and disrupted global supply chains, said J Rajmohan Pillai, Chairman of Beta Group which owns the brand NutKing.

 

On the pricing front, he said the cashew industry witnessed significant volatility due to supply chain challenges, including increased logistics costs and production inefficiencies which had a direct impact on prices. Besides, weather anomalies in key cashew-producing regions like West Africa and Southeast Asia led to fluctuations in crop yields, thereby affecting global supply and prices. The geopolitical landscape, particularly trade policies and international relations involving major cashew-exporting countries, also played a critical role in shaping the price dynamics, he said.

 

Rapid shift

In India, he said the cashew market has seen a rapid shift in the consumption pattern in recent years, primarily owing to flavoured assorted cashew products occupying an increased share in the retail market space. However, the market is likely to be hampered as the local population prefers other lighter snacks, available at lower prices, for on-the-go snacking.

 

Largest consumer

Quoting figures, he said India remains the world’s largest consumer of cashews, processing almost half of global cashew kernels and consuming 40 per cent of the global output. The market size is expected to grow from $2.31 billion in 2023 to $2.79 billion by 2028.

 

On the prospects in 2024, Pankaj N Sampat of Samsun Traders said, 'we can expect the market to be steady. Downside is very limited. Unless something dramatic happens on the supply side, there will not be any big jump in prices. But I have a strong feeling that prices in 2024 will be somewhat higher than the lows we have seen in Q2/Q3 of 2023.

 

Cashew supply, according to him, has been comfortable for the last few years mainly because of built-up over-supply, which is almost completely used up. There is not much chance of any big increase in supply in the short term. On the contrary, there is some doubt about what impact El Niño will have on the 2024 crop, especially in Vietnam and Cambodia.

 

There is a reasonable possibility of a rise in consumption due to the lower prices and better availability, coupled with a good probability of economic growth in most countries, he added.

 

Nabard Consultancy Services (NABCONS), the subsidiary of Nabard has forecast the millets segment in Karnataka to grow by 18-20 per cent annually over the next five years on rising awareness of the nutri-cereals and the promotional initiatives taken by the State government.

 

NABCONS, which conducted a study on the impact of the International Trade Fairs (ITFs) on the growth of the millets sector in Karnataka during 2017-23, has pegged the current millets market in the State at ?975 crore. “The ITFs have played a major role for market creation for millets in Karnataka. The millets sector will see a compounded annual growth rate of 18-20 per cent over the next five years,' said Sandeep Dharkar, DGM, Nabard.

 

Realising the importance of millets, Karnataka had taken a path-breaking step to organise the international trade fairs on millets and organics in the State. The ITF was started in the year 2017 and the State has successfully organised four ITFs till 2023. The fifth edition of the ITF on millets and organics is to be held in Bengaluru from January 5-7.

 

Millet producer groups

The NABCONS study revealed that the number of millet producer groups such as the State federation, FPOs, FPCs and millet clusters increased to 1,619 during 2023 as against 167 in 2017 and the mass awareness of the millets enhanced the demand in urban areas. Also, the number of millet processors and manufacturers in the State increased to 423 in 2023 as compared to 65 in 2017. As a result of various schemes promoted by the Karnataka government, many processors and manufacturers have come forward to promote and popularise millets, the study said. Also, the number of exporters exporting millet products has increased to 86 as of 2023 as compared to 15 before 2017.

 

Exports of millet and millet-based products from Karnataka stood at ?36 crore during 2022-23. The number of retail outlets, bulk traders and other marketeers such as distributors, dealers and online traders increased to over 894 across the State by 2023 with more than 500 in Bengaluru alone catering to the high-quality processed millets in modern packages and value added products.

 

Another impact of the ITFs was that the FPOs/FPCs have turned into big time traders involving in price negotiations, discussion on quality, supply and long relationships, which has helped them earn 15 per cent additional income avoiding the intermediaries, Dharkar said. Further, Dharkar revealed that based on the knowledge gained from ITFs, the packaging of millet products has seen an improvement with greater transition to biodegradable packaging and smart and intelligent packaging supporting product quality and traceability.

As many as seven items from Odisha received the GI tag by the Chennai-based Geographical Indications Registry on Tuesday. With these new entrants, the total number of GI-registered products in Odisha rose to 25.

The new items include the Odisha Khajuri Guda, Dhenkanal Magji, Similipal Kai Chutney, Nayagarh Kanteimundi brinjal, Dongria Kondh embroidery shawl, Koraput Kalajeera rice and the paintings of Lanjia Saora.

 

'It is a matter of pride that seven products from Odisha were registered in the GI registry. Each of these products hold a distinct identity deeply rooted in the state’s cultural fabric. All the GI products need to be marketed and promoted across the state and outside and made available in shops,' cultural and GI researcher Anita Sabat said.

She added, 'GI owners, users and facilitators must ensure correct representation through proper research and documentation by stakeholder consultation and sharing information about the correct geographical area, number of producers, artisans, weavers and farmers, which will make the process of GI registration easier.'

 

'As these products gain official recognition on the national stage, the state government must launch them in the global market,' Manas Mohapatra, an expert in cultural affairs said.

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Supplies of petroleum products resumes from Bathinda

After the intervention of the state government, supplies of petroleum products resumed from oil depots of Indian Oil Corporation (IOL), Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL) under police protection. Bathinda Deputy Commissioner Showkat Ahmad Parray and Senior Superintendent of Police Harmanbir Singh Gill held a meeting with representatives of oil companies and drivers, assuring them of their safety and police protection during supplies. However, long queues persisted at petrol stations as the supplies had not reached all stations yet. District officials urged people not to panic as supplies have resumed, albeit with some delay.

 

Odisha collects state GST of Rs 2,578 crore in December 23

Odisha's state GST collection in December 2023 reached Rs 2,578 crore, marking a growth rate of 70.07% compared to December 2022. The state has collected a total of Rs 17,419.6 crore as state GST up to December 2023, registering a growth rate of 31.61% over the previous year. The collection under all Acts monitored by the commissionerate of commercial tax and GST in Odisha during December 2023 is Rs 3,665.2 crore. Meanwhile, India's GST collections in December 2023 amounted to Rs 1.65 lakh crore, a 10.28% increase compared to December 2022.

 

Wheat production is expected to touch a new record of 114 million tonnes in the ongoing 2023-24 crop year on higher coverage and provided weather conditions remain normal, a top food ministry official said on Wednesday. The last leg of sowing of wheat, the main rabi (winter) crop, is underway and will continue till next week. Till last week, wheat was planted in 320.54 lakh hectares, as per the official data.

 

Wheat production stood at a record 110.55 million tonnes in the 2022-23 crop year (July-June), compared to 107.7 million tonnes achieved in the previous year.

 

'We expect that total area under cultivation of wheat will increase this year and God willingly if the climate is alright the production will be 114 million tonne that's what the agriculture ministry has indicated informally to us,' Food Corporation of India (FCI) Chairman and Managing Director Ashok K Meena told reporters.

 

Area sown to wheat crop is also showing an increase compared to the last year. There was a deficit of one per cent in some states but that will also be made up in the first week of January, he said.

 

'If that is the level of production, we are very confident that we will be able to procure more than our requirement and also additional stocks needed for the Open Market Sale Scheme (OMSS) for next year,' he noted.

 

When asked if the central nodal agency plans to step up procurement considering the opening wheat balance of 76 lakh tonnes to be on April 1, which is just enough to meet the buffer requirement, the FCI chief said: 'We will try our best to provide minimum support price to all farmers. Because of the open market sale, the indications are prices have stabilised and are not higher than it was last year.

 

'Since the wheat MSP is higher by 7 per cent than the last year, we hope that lot of farmers will be willing to give their produce to the FCI,' Meena said.

 

Last year, the FCI's wheat procurement stood at 26.2 million tonnes, higher than the annual buffer requirement of 18.4 million tonnes.

 

This year's wheat crop will be ready for harvest from April onwards.

 

FCI is the central nodal agency that buys rice and wheat to ensure MSP to the farmers and distributes the same for free to 81 crore poor via ration shops. It also uses surplus grain via OMSS to boost domestic availability and check prices.

 

Pulses imports are seen rebounding to a six-year high in the current financial year on shortfall in domestic output following deficit rainfall in growing areas. Trade estimates that pulses imports are likely to touch 3 million tonnes(mt) during the current financial year, an increase of around 31 per cent over last year’s 2.29 mt.

 

The shortfall in domestic output due to weather vagaries led to prices spiralling in recent months. The government, besides opening up imports of yellow peas till March 31, 2024, has extended the window for duty-free imports of pulses such as lentils (masur), tur (pigeon pea) and urad (black matpe) till March 2025, to boost the supplies and keep prices under check.

 

Lentils tops 1 mt?

'Chana output was good last year, while the moong bean production was not that encouraging this kharif as it was affected due to the dry spell in Rajasthan. We are still dependent on imports for the pulses varieties such as tur, urad and lentils. We will end up importing almost 3 mt of pulses this financial year' said Bimal Kothari, chairman, India Pulses and Grains Association (IPGA).

 

As per the DGCIS data, India has already imported over 1.96 mt of pulses during the April-October period of the current financial year, valued at over Rs.14,057 crore ($1.69 billion). Of this, the imports of lentils is reported to have crossed a million tonnes.

 

India had imported a record 6.5 million tonnes of pulses during 2017-18, when yellow peas were imported in large quantities. Imports declined in the subsequent years after restrictions were placed on varieties such as yellow peas, chick peas and moong.

 

Sowing down

As of December 29, the pulses acreages in the current rabi season was down at 142.49 lakh hectares (lh) over 153.22 lh a year ago. This was mainly on account of a dip in chana acreage at 97.05 lh over 105.80 lh a year ago. However, the area under lentils has seen a marginal increase at 18.68 lh (18.02 lh).

 

The trade expects chana output to be lower by 10-15 per cent on account of a drop in acreage, while the production of lentils is likely to increase with favourable weather in the key producing States of Madhya Pradesh and Uttar Pradesh.

 

 

North Eastern Regional Agricultural Marketing Corporation Ltd. (NERAMAC) is a PSU under Ministry of Development of North Eastern Region. It supports farmers/ producers of the region to obtain remunerative prices for their produce, as well as to enhance the agricultural, procurement, processing & marketing infrastructure of the Region.

 

NERAMAC procured more than 140 MT of produces like Pineapple, Avocado, Black Rice, Cashew nut, Large Cardamom, Cinnamon, and Black Pepper etc. in 2023 under its umbrella brand ‘NE Fresh’. It also provided market linkages for fresh pineapple and other vegetables. NERAMAC has product basket of 130+ products in the retail segment. Around 30 local entrepreneurs/MSMEs associated with NERAMAC for branding and marketing of their processed products.   Retails products are marketed through 12 stalls/retails outlets of NERAMAC covering seven cities/towns. Including two, One Station One Product (OSOP) stalls at Kamakhaya and Dimapur Railway stations.

 

NERAMAC also launched Brand ‘NERAMAC Premium’ for marketing of G.I. tagged products. NERAMAC has facilitated the User Authorization registration of 1308 farmers of NER for all 13 G.I. registered Agri-Horti products during the year.  This is a significant milestone for development of the agri-horti sector of the North East Region.

 

Under the scheme "Formation and Promotion of 10,000 Farmer Produce Organizations (FPOs)” of the Ministry of Agriculture & Farmers Welfare, Govt. of India, 205 FPOs has been formed across NER covering 15,500 farmers.

 

NERAMAC participated/organized 17 events and covered around 2000 farmers/entrepreneurs. During the year, Cashew Processing Plant (CPP) of NERAMAC at Agartala revived and started functioning with the fund support from NEC and Integrated Ginger Processing Plant (IGPP) at Byrnihat, Meghalaya revived under PPP mode.

 

North East Cane and Bamboo Development Council (NECBDC) completed plantation of 900 hectare in the three districts of Assam, which covered 3.30 lakh saplings and 750 farmers’ beneficiaries.

 

Capacity building, skill up gradation and trainings are the main activity of NECBDC. During the period, NECBDC conducted 21 training /skilled development training programme and   has been trained more than 463 persons in cane and bamboo.

 

The Bamboo Based Craft Concentration Centre at Sovima Village, Dimapur, Nagaland funded by North Eastern Council (NEC), Ministry of DoNER, Government of India (Project Cost Rs.448.46 Lakh) was completed and inaugurated by the Chief Minister of Nagaland Shri Neiphiu Rio on 22nd November 2023 in the presence of many dignitaries. The Centre will focus on traditional and modern Handloom and Handicrafts of Nagaland for domestic and international market.

 

Around 115 occupational Health Safety Kit was also distributed to artisans of NECBDC Clusters of Assam and Manipur.

Indonesia has sought 900,000 tonne of onion from India amid the ban on exports, a top government official said. This assumes significance as Indonesia is India's largest trade partner in ASEAN, and imports onions mostly from the US, India and New Zealand.

 

The request comes after India imposed a 40% export tax on onions last August, followed by a minimum export price of $800 per tonne in October, to stabilize domestic supply and prices due to a crop shortfall. Despite these measures, high prices led to a complete export ban in December, effective until the end of the 2023-24 financial year.

 

'After India’s export ban on onion, traders and importers in Indonesia have been requesting Indian onion, and there is a demand for 900,000 tonnes of onions worth $100,000. Hence, a request has been sent to the Indian government,' the official said.

 

India accounts for about a fourth of the global onion output and is the largest exporter after the Netherlands and Mexico.

 

In April-October of the ongoing financial year, India exported 1.4 million tonne (mt) of onions, including 36,146 tonne to Indonesia. During the corresponding period of FY23, it exported 1.35 mt of the kitchen staple. In FY23, India’s onion export totalled 2.5 mt, including 116,695 tonnes to Indonesia, according to data from the commerce and industry ministry and exporters.

 

'The Embassy has not received any information on this issue. Factually, Indonesia is also a producer of onion, particularly small size red onion. In 2023, Indonesia has imported onion with total of 194.107 tonne, and out of this, total import from India is only 79.000 tonne,' the Indonesian embassy in New Delhi said.

 

Queries sent to the spokespersons of consumer affairs, food & public distribution and commerce and industry ministries remained unanswered till the publishing time of this story.

 

'After the export ban, our containers were detained at the port gate. We have requested the government to allow the export of containers which have been cleared by customs,' said Sanket Hoge, a Mumbai-based agri export consultant. 

 

'The exporters sold at ?20 a kg in the local market after paying ?45 for crops, packing, labour, stuffing, transport freight, clearance charges, and sea freight. Around ?25 per kg losses are faced by the exporters for each container,' he said. Exporters also suffered heavy losses at the Bangladesh border.

 

Production challenges, including erratic rains and extended dry spells, have impacted onion output in the kharif and late kharif (monsoon sowing) seasons. This led to a sharp decline in cultivation area and production, intensifying the political debate ahead of the national election.

 

On Wednesday, the average retail price of onion was at ?41.12 a kg, 49.6% higher than the previous year, according to official data.

 

Onion cultivation area declined nearly 96% year-on-year to 8.6 million hectares (mh) in top grower Maharashtra in the 2023-24 kharif season. Production of the vegetable fell 94% year-on-year to 750,000 tonne in the state.

 

In Karnataka, the second largest grower, acreage shrank by about 75% to around 11 mh and production by 43.3% from the previous kharif season to 770,000 tonnes, according to agriculture ministry sources.

 

As per the government’s preliminary assessment, India may have produced 3 million tonnes (mt) and 1.5 mt of onion in the 2023-24 kharif and late kharif seasons, respectively. This is significantly lower than the 4.1 mt and 2.4 mt produced in the respective seasons last year.

 

In the previous rabi season, onion production stood at 24.6 mt. Average monthly domestic consumption was 1.4-1.7 mt, but that may be lower now depending on the price.

 

In the 2022-23 crop year, India had produced 30 mt of onions.

 

'If we look at the data of the last few years, onion farmers have been suffering losses. Despite unseasonal rains, hailstorms and the current drought, the farmers are standing strong, making their way through the conflicting conditions,' Hoge said.

 

Farmers borrow from banks or cooperative societies for crop cultivation, but in the last few years, the debt burden on farmers has increased significantly, he said. 'The central government did not give any direct subsidy when onions were selling at ?2 per kg. However, the government intervenes regularly to control rising market prices,' Hoge added.

 

The absence of exporters from markets due to the ban has depressed onion prices, with further declines anticipated in the coming days.