For close to four decades, export of onion could take place only through the agencies designated by the government. Now anyone can export onions, as the Central government freed export of the bulb by removing this condition last week.

Onion export was canalised in 1974. National Agricultural Cooperative Marketing Federation (Nafed) was the only canalising agency till 1999. Subsequently, 12 State Trading Enterprises (STEs) along with Nafed were designated as the canalising agencies for export of onion. The exporter had to pay 1% commission to these agencies in order to get the no-objection certificate for exports.

As the country is expecting an all-time-high onion crop in 2014-15, the government about to face the electorate, removed the minimum export price (MEP) restrictions, which were imposed during winter season as retail prices touched Rs 100/kg.

Last week, the director general of foreign trade (DGFT) issued a notification to free onion exports. There was a strong demand from growers and exporter to remove canalisation as it did not serve any purpose.

"The canalising agencies did not use the money collected from the exporters to better the condition of farmers," claimed Ajit Shah, president, Onion Exporters Association.

The 13 canalising agencies include NAFED, Maharashtra State Agricultural Marketing Board (MSAMB), Spices Trading Corporation, AP State Trading Corporation. "Only five to six of the STEs were actually functioning," said Nafed Director HB Holkar.

MSAMB, which was a leading agency issuing no objection certificates to onion exporters has welcomed the decision. "Freeing up of onion exports will help boost onion exports. We never looked at the commission charged for the certificates as a source of revenue for us," said MSAMB Managing Director Milind Akre.

Exports would be crucial to avoid a crash in onion prices as the rabi harvest gathers pace from April. The current unseasonal rainfall, though has damaged the standing onion crop, will not affect the overall onion availability due to record area under the rabi crop. Despite the arrival of rain-damaged crop in the market, domestic prices have remained firm at Rs 6/kg to Rs 8/kg as the good quality bulb is getting a good price.
 

Mahuva, home to almost 80% of onion dehydration units, finds itself catering more and more to domestic needs, as opposed to export demand. A surge of ready-to-eat and fast foods is expected to take domestic consumption from 25% of Mahuva's dehydrated product to a 100% very soon.

"In last two years, there has been a quantum jump in domestic demand for dehydrated onion. This is mainly due to the fast food culture," says Asgar Chattariya, secretary of the All India Dehydration Association. Additionally, multi-national companies that were once international procurers now buy locally at their India-based operations.

The growing demand at home is a blessing for the industry, as export market prices have dipped to $1,500-$1800 per tonne, against $2,000-$2200.

"Usually export market is risky and uncertain as there are other suppliers from countries like China and Egypt," said Chattariya. Home sales bring certainty. "In the domestic market, there is only one major local supplier - Mahuva."

The town produces 50,000 tonne dehydrated onion annually, with white onion getting precedence for exports. According to Chattariya, the past couple of years have seen 10,000 tonne to 12,000 tonne sold domestically.

Companies like Pepsi, Nestle, HUL, ITC, Balaji and masala maker Suhana purchase dehydrated white onion — which requires dedicated machinery and cannot be produced by the companies themselves, unlike ginger or garlic.

Jayntibhai Patel, owner of Darshan Food Pvt Ltd, says he has received orders from masala maker Suhana. "In last three years, they have increased their purchase from 40 tonne to 200 tonne annually," he added.

Mahuva's onion dehydration turnover is approximately Rs 500 crore annually, which includes mainly earnings from exports.

Dehydrated white onion products are exported in different forms as slices, kibbled, flakes, minced, chopped, ground, granules or power to Europe, North America and Russia. Onion harvesting and arrival starts from December; thus, dehydration units work only for three months, to a maximum of five months.

Mahuva has nearly 62 dehydration units and another five are under construction. The first dehydration plant was established in 1980, but as an industry, it only started growing gradually after 1984, though a maximum have come up in recent years.
 

 The government on Wednesday allowed open export of all varieties of onions against the earlier practice of canalising them through State Trading Enterprises (STEs) to enable faster shipment of the commodity.

"Export of onion has been made free. Earlier, export of onion was permitted through STEs," the commerce department said in a notification issued.

Among the canalising agencies for export of onion are Nafed, Spices Trading Corporation, Maharashtra State Agriculture Marketing Board, and AP State Trading Corporation, among others.

Earlier this month, the government had abolished the export floor price of onions as domestic prices dropped to Rs 6-7 a kg in the wholesale markets. The government had imposed minimum export prices (MEP) on onion in September 2013 and then it was raised several times to curb exports and boost domestic supplies as retail prices had shot up as high as Rs 100 a kg in major parts of the country. India had to even import onion to control price rise.

In 2012-13, the country had exported 1.82 million tonnes. India's annual onion production is estimated at 18.9 million tonnes in 2013-14, while in 2012-13 it was around 16.8 million tonnes.

The stake holders on Wednesday welcomed the decision of the central government to remove the Minimum Export Price (MEP) on onions, saying that the move will help onion exports in the long run.

The central government on Tuesday removed restrictions on onion exports by scrapping the MEP of USD 150 a tonne.

Speaking to TOI, Changdeo Holkar, director of the National Agriculture Co-operative Marketing Federation of India said, "The area under the cultivation of summer crop has increased by 25% this year. Hence, the production is expected to be more this year and the pressure will reduce after June. While there will be no effect of the removal of the MEP by June-end, the move will help traders in the long run. The price trend is expected to be downward for the next three months. The removal of the MEP will definitely help boost export of onions. There should be no MEP on onions if we are expected to compete in the world market. The farmers also get benefits if export increases."

"At present, the onion export is low and production of summer onion is expected at large this year. The move will help stabilise the onion prices from declining. The government should have removed the MEP in November or December when the arrival of Kharif crop was in abundance. After all, its the removal will lead to free trade and help increase the export." Nandakumar Daga, president of the Lasalgaon Onion Traders' Association said

Speaking to TOI, R P Gupta, director of the National Horticulture Research Development Foundation said, "The average wholesale onion prices are in the range of Rs 700 to Rs 900 a quintal in the country and it is expected to remain in the same range for the next few days. The decision to remove the MEP is good, but it will help only in the long run."

The average wholesale onion prices at the largest onion market in the country, the Lasalgaon Agriculture Produce Market Committee (APMC), were recorded at Rs 760 a quintal on Wednesday against Rs 750 on Tuesday.

The minimum and maximum prices were recorded at Rs 400 and Rs 825 a quintal, respectively. Around 16,000 quintals of onions were auctioned at Lasalgaon.

After falling to the level of cost of production, onion prices recovered to record a 50 per cent increase in the past two weeks, following controlled supply from farmers.

In the benchmark Lasalgaon (Maharashtra, near Nashik) market, Asia’s largest spot onion selling yard, it was Rs 8-10 a kg on Wednesday, a steady increase from Rs 5-5.50 a kg two weeks earlier. The model price announced by the Nashik-based National Research and Development Foundation (NHRDF) showed a little over 50 per cent increase in the price on February 15, to close at Rs 9.15 a kg on Tuesday from Rs 6 a kg two weeks earlier. The off-spot prices were Rs 3.50 a kg two weeks before, with farmers planning to dump on the road instead of selling in mandis.

“Total arrivals slumped to 322.5 tonnes when onion was ruling at Rs 6 a kg on February 15. But, with the increase in prices, arrivals also increased. On Tuesday, total arrivals recorded at 1,640 tonnes, with the price quoted at Rs 9.15 a kg. This indicates farmers have full control over supply,” said R P Gupta, director. NHRDF.

There is almost no export demand due to the short shelf life. The quality of the late kharif season crop (largely harvested and supplied to the market currently) is poor, compared to the rabi season crop which has a shelf life of 12 months. Hence, exporters are currently abstaining from booking in large quantity.

“The current price rise can be attributed only to controlled supply from farmers, as their holding capacity has increased. Both exporters and bulk consumers remained absent from the market,” said a senior official from one of the largest onion export houses.

India’s exports declined 33 per cent to 853,000 tonnes in the first eight months (April-November) of the current financial year. India exports onions to North Africa and West Asia, Sri Lanka and a number of Southeast Asian and neighbouring countries. In 2012-13, the country had exported 1.82 million tonnes. Our annual production is estimated at 13.15 mt, with 773,000 hectares as the area under cultivation. In 2012-13, production was 1.66 mt.

 The  inter-ministerial meeting held on Monday has decided to do away with the minimum export price for onion for the time being.
 
According to officials close to the development, it is likely that there will be no MEP for export of onion and the  export policy will be reviewed after watching the price situation for some time and arrival of the new harvest due in mid march.  However final minutes of the meeting is yet to be worked out  followed by the necessary notification.
 
While the ministry of agriculture  had suggested for complete removal of the MEP to facilitate easy exports, department of  consumer affairs have strongly opposed it stating that it will not only push up prices in the domestic market  but it may lead to unfair trade practices.
 
According to consumer affairs, one of the reasons for the abnormal hike in onion prices some time back was uneven distribution in the domestic market. Reports from states suggested that there has been large scale hoarding to export rather than supplying in the domestic market  as exports  were profitable, said an official source.
 
Therefore, according to the ministry, onion MEP need to be abolished for free choice to the farmer as to trade its produce in domestic or export market as per the profitability.
 
In December 2013,  the ministry of commerce reduced minimum export price (MEP) of onion to $150 a tonne from $350 for the third time  in a year  to boost exports  and check sharp fall in domestic prices.
 
In December itself, the government  had reduced the onion MEP to $800 a tonne from $1,150 a tonnes and just three days after that MEP was slashed to $350 a tonne.

 The government had imposed MEP on onion in September 2013 and then it was raised several times to curb exports and boost domestic supplies as retail prices had shot up as high as Rs 100 per kg in major parts of the country. The country had to even import onion to control price rise.
 
MEP reduction has helped in checking exports, which  as per reports, fell to  8.53 lakh tonnes (LT) during April-November period of this fiscal against 18.22 LT in the same period in 2012-13.
 
Currently, the  wholesale onion prices in Maharashtra are between Rs 8 a kg to Rs 10 while the retail prices are in the range of Rs 20 a kg to Rs 25.
 
Bangladesh is one of the prime buyers of Indian onions. Although Pakistan, Iran and Egypt are competing with India, the exports have increased substantially after the reduction in the minimum export price (MEP) to $150 a tonne.

Onion exports in value terms during April-December period of 2013-14 have risen by 59% to Rs 2,532 crore on account of higher export price fixed by the government.

Exports during the same period in 2012-13 fiscal stood at Rs 1,590.79 crore, according to National Horticultural Research Development Foundation (NHRDF) data.

In the entire 2012-13 discal, the country had exported onions worth Rs 2,294.90 crore.

During April-December period of 2013-14, in quantity terms onion exports declined by 30% to 9.87 lakh tonnes as compared with 14.04 lakh tonnes in the corresponding period of previous financial year.

India exported 18.22 lakh tonnes of onions in the entire 2012-13 fiscal.

The government imposed MEP on onion in September and then it was raised several times to curb exports and boost domestic supplies as retail prices had shot up as high as Rs 100 per kg in major parts of the country. The country had to even import onion to control price rise.

On December 26, onion MEP, which is the benchmark price below which the commodity cannot be exported, was reduced to $150 a tonne from $350 a tonne.

Before that, MEP was reduced to $350 per tonne from $800 a tonne on December 19, while it was cut to $800 a tonne from $1,150 on December 16.

With improved domestic supplies and fall in wholesale rates, the Centre has now reduced the MEP sharply to boost exports and stabilise the domestic prices. Wholesale rates in Lasalgaon mandi in Nashik have risen to Rs 11.25 per kg from around Rs 10 per kg last month.

Robust exports and good domestic demand have kept the onion prices firm despite heavy arrivals. However, fear of a fall in onion prices is still there due to an expected bumper production of the bulb.

The wholesale onion prices in Maharashtra are between Rs 8 a kg to Rs 10 while the retail prices are in the range of Rs 20 a kg to Rs 25.

 Bangladesh is one of the prime buyers of Indian onions. "Currently, there is very good demand for Indian onions from Bangladesh. A rake full of onions is going to Kolkata every alternate day from Nashik district," said CB Holkar, director, National Agricultural Co-operative Marketing Federation ( Nafed).

China's onion export has slowed down recently, making India the largest onion exporter in Asia at the moment. Although Pakistan, Iran and Egypt are competing with India, the exports have increased substantially after the reduction in the minimum export price (MEP) to $150 a tonne. "Our onions are being exported everywhere in the world. We are currently leading in onion exports. The demand from the Middle East will be less next week due to Muslim festival. However, it will pick up again after a week," said Ajit Shah, president, Onion Exporters Association.

Along with exports, good demand from the domestic market has given support to the farmer-level prices, which are firm between Rs 9 a kg to Rs 11. "The late kharif crop is coming from Maharashtra, Madhya Pradesh, Gujarat and Karnataka, supplying to the rest of the country," said RP Gupta, director, National Horticulture Research and Development Federation (NHRDF).

Due to favourable weather and an increase in area, the late kharif crop is expected to be good. Although the prices are firm for now, traders expect them to come down by Rs 2-Rs 3 a kg in the next two to three weeks as arrivals will increase. "Removing the MEP completely will be useful for preventing further price fall," said Holkar.

Onion exports have more than doubled during December at over 1.33 lakh tonnes compared with the previous month after government lowered the minimum export price (MEP).

Exports of onions stood at 66,236 tonnes during November, 2013, according to data compiled by the National Horticultural Research and Development Foundation (NHRDF).

During last month, the government had slashed onion MEP thrice in order to boost exports and check the sliding domestic prices of edible bulb that led to farmers protest in producing states.

On December 26, onion MEP, which is the benchmark price below which the commodity cannot be exported, was reduced to $150 a tonne from $350 a tonne.

Before that, MEP was reduced to $350 per tonne from $800 a tonne on December 19, while it was cut to $800 a tonne from $1,150 on December 16.

As per NHRDF data, onion exports jumped more than two-fold to 1,33,290 tonnes in December as against 66,236 tonnes in the previous month. However, exports were lower than December, 2012 that saw shipments of 1,37,956 tonnes.

During April-December period of 2013-14, onion exports have declined by 30 per cent to 9.87 lakh tonnes as compared with 14.04 lakh tonnes in the corresponding period of previous financial year.

India exported 18.22 lakh tonnes of onions in the entire fiscal year 2012-13 (FY13).

The government had imposed MEP on onion in September and then it was raised several times to curb exports and boost domestic supplies as retail prices had shot up as high as Rs. 100 per kg in major parts of the country.

India had to even import onion to control price rise. With improved domestic supplies and crash in wholesale rates, the Centre has now reduced the MEP sharply to boost exports and stabilise the domestic prices.

Wholesale rates in Lasalgaon Nashik's vegetable market have risen to Rs. 11.25 per kg from around Rs. 10 per kg last month.

Union Agriculture Minister Sharad Pawar said that in view of the high production of onion in the district this season, he would make efforts to make the global market accessible for the local farmers.
 

Speaking at a function at Manmad, Pawar also said that he would take up other issues of local farmers with the concerned officials and his cabinet colleagues in Delhi.
 

The government reduced minimum export price of onion by $350 a tonne to push exports.

The price was revised on Monday — at $800 per tonne amid reports of crashing onion prices at major mandis.

Though it is expected to bring some relief experts doubt whether it will be of great help considering the prevailing global prices.

They said fixing the price at $600 could have helped exporters to get buyers.

A government committee has called for a complete overhaul of India's farm data-gathering system to ensure a better understanding of production and prices to allow policymakers to make effective and timely interventions, a suggestion that assumes significance in the light of onion prices shooting up recently.

The panel headed by former Planning Commission member YK Alagh, which was set up by the government to review issues relating to agriculture statistics, has proposed periodic collection of data on subsidies given to farmers, besides figures on export and import of food grain.

The recommendations also come as the government is grappling with a sudden spurt in prices of some vegetables and commodities despite a good monsoon. The rise in onion prices has been used by the Opposition parties as a political weapon.

With general elections around the corner, the government is wary about food inflation.

"Data on retail prices of essential commodities is received with a time lag of about five to six weeks and the response rate is just about 60%," the panel said in its report.

This forces revisions as more information comes in. For example, wholesale price index-based inflation for August had to be substantially revised to 6.99% from 6.1% reported earlier with onion and tomato inflation in triple digits. The Alagh panel report flags constraints in wholesale and retail inflation data collection, mainly due to the inadequate responses to queries, lack of coordination between state agencies and poor supervision of price collation, quality of data collection and policymaking.

The committee has recommended that markets should be connected to a network so that price data can be recorded, processed and disseminated in real time.

Poor data quality has hamstrung India's policymakers as they are forced to use the numbers to determine key responses. For instance, the Reserve Bank of India uses inflation data to set the interest rates.
 

The committee has also pitched for periodic subsidy data collection and annual estimation of aggregate subsidies in line with World Trade Organisation norms. The central government's total subsidy outgo has gone up about 400% between 2003-04 and 2012-13.

"Total subsidy data should be collected on a periodical basis. Estimates on aggregate measurement support need to be made on an annual basis," the report said.

The recommendation comes at a time when disclosure norms will become stringent as India is likely to sign WTO's four-year "peace clause" at the ninth ministerial in Bali. The clause will provide India legal protection against disputes over exceeding subsidy limits.

With regard to trade, the committee has highlighted statistical gaps in data reporting and recommended the setting up of a panel to look into it. For instance, trade through e-commerce does not get captured by the current Directorate General of Commercial Intelligence and Statistics system. Data on re-exports is not available. Among services, data on transportation, health and education exports is unavailable.

The Centre has hiked the minimum export price of (MEP) of onions to USD 1,150 per tonne for boosting domestic supplies and controlling prices which have been ruling at very high levels for about three months.

On September 19, the government had raised the MEP to USD 900 per tonne, from USD 650 per tonne imposed on August 14. Onions can't be exported below the MEP.

This is the third hike in recent months aimed at discouraging exports. Although export volumes have come down, the domestic retail prices still remain at unaffordable level of Rs 60-70 per kilo in most parts of the country.

"Export of all varieties of onions...will be subject to a MEP of USD 1,150 per tonne," Director General of Foreign Trade ( DGFT) said in a notification.

Traders said however that the latest MEP hike may only create some "psychological impact" because overseas shipments, in any case, are not happening as market players are getting better rates in the domestic market.

Onion exports in August had come down substantially to 29,000 tonne after a minimum floor price was imposed on shipping them in the overseas markets.

The government has been keeping a close watch on the price situation and has taken several measures to improve supplies including more imports.

The Centre has also directed all state governments to crack down on hoarders and speculators who are keeping onion prices artificially high.

There is short supply of onions as much of the stored crop from last year exhausted. New crop from South India is yet to arrive in huge quantities in consuming states.

Maharashtra, Karnataka and Gujarat are some of the main onion producing states.

The Union government is expected to fix a higher Minimum Export Price (MEP) for onions. A committee of officials is believed to have suggested $900 a tonne, almost $250 more than the current MEP, to curb its outflow.

The final call on export prices will be taken by the commerce minister, sources said. The meeting also decided to direct states to take action against traders who create an artificial shortage, a senior official said. A formal order is expected in a  few days.

He said around 10,000 tonnes of onions had been exported this financial year, till September. It should stop with the new MEP.

The meeting had officials from the commerce, agriculture, consumer affairs and finance ministries.

Wholesale and retail onion prices in much of the country have increased sharply since July. In this city, retail prices are as high as Rs 80 a kg, compared with Rs 22 a kg a year before. Maharashtra, the largest producer and with the biggest stock, has been asked to ensure steady supplies to consuming states, the official said.

The state government has been asked to intimate the Centre if there are any bottlenecks in the supply chain.

Delhi's food and supplies minister, Haroon Yusuf, accused the Madhya Pradesh government on Wednesday of not taking action against hoarders in the state "with a purpose". MP is ruled by the rival Bharatiya Janata Party; Delhi’s is a Congress government. The retail price in the city had gone down to Rs  55 a kg recently but has since risen again, to Rs  80 a kg.The minister said the Delhi government had again started selling the vegetable at Rs  60 a kg, at 1,000 points across the city through vans.

With the retail price of onion increasing by Rs 10-20 a kg in a few days, the government is likely to raise the minimum export price (MEP) to $1,000 a tonne from the current $650 a tonne.

However, the government might not immediately put a blanket ban on exports, as that would have a direct impact on the growers.

“After the MEP was re-imposed at $650 a tonne last month, there has been a slowdown in exports but it has not entirely stopped. Therefore, we may hike the MEP further,  which would make exports difficult,” said a senior government official.

He added a final decision is expected over the next few days. “Our assessment shows that even after the MEP was hiked around 600-700 tonnes of onions were exported daily, which will stop once MEP is raised further to $1,000 a tonne as then onion priced only above Rs 65 a kg in the wholesale markets can be exported,” the official explained.

He said a meeting under the chairmanship of the cabinet secretary could be held in the next few days to further assess the price situation.

The wholesale and retail prices of onion rose by Rs 10 a kg  here on Tuesday as supplies from Maharashtra and Rajasthan tapered, while arrivals from the southern states are not in full swing due to rains there.

In Delhi’s Azadpur market, the wholesale price rose to Rs 60 a kg on Tuesday from Rs 50 a kg on Monday. The price rise is reflected in retail markets with vendors charging as high as Rs 70 a kg on Tuesday, compared with Rs 55-60 a kg a few days ago.

Prices have shot up in other parts of the country, too. Prices had shown some signs of stabilisation around early September after the government re-imposed the export tax and canalised all exports through the National Agricultural Cooperative Marketing Fedration of India Limited.

In a related development, Food Minister K V Thomas has expressed the hope that onion prices would soften by early next month. He added the Centre has asked producing states such as Maharashtra to crack down on hoarders of onion, a politically sensitive commodity.

According to the minister, apart from high onion prices, the slight increase in food inflation in August was due to the increase in the minimum support prices of major farm items by the government.

Assam to go on a mission mode to increase the area under Onion cultivation in the state.

Assam Chief Minister, Tarun Gogoi on Monday asked the agriculture department to increase the production of onion in the State.

Officials of the department apprised the Chief Minister that Assam has been selected as one of the six States by Government of India to increase the production of onion and that the department has taken up a new initiative, CM's Onion Mission for 2013-14.

Assam has around 8525 hectares under onion producing 30.90 metric tonnes (MT). Majority of the requirement is sourced from outside the region.

The all India average for production of onion per hectare is 16.79 MT while that of Assam is 3.62 MT per hectare. Northeast India on an average requires 100 truck loads (20 tonne each truck) of onion in a week.

Gogoi reviewed the progress of activities of Agriculture department at a meeting with concerned minister and senior officials.

The Chief Minister said there is need for increasing the areas under double/multiple cropping and cropping intensity and to go in for farm mechanisation in a big way to boost production. "We have to bring more and more areas under mechanised farming. Government will raise the subsidy from 50 to 75 per cent to meet the farmers' requirements of tractors, power tillers and other equipment".

Gogoi asked the department to revive the Agriculture Farming Corporation (AFC). The Chief Minister directed the department to submit detailed project report for revival of 11 units of AFC.

For successfull Kharif onion nursery production, during heavy rains the National Horticultural Research and Development Foundation, Nashik has developed a technology for Kharif onion production through bulblets.

Varieties

Bulblets raised from varieties like Agrifound Dark Red, Baswant-780, N-53 and Arka Kalyan during summer season are used for planting. The width of nursery bed should be 0.60 metre and length can be at 3-4 metres as per convenience.

Surface of beds should be smooth and well levelled. The bulblets should be treated with thiram at 2 gm/kg of seed for control of damping off disease.

The nursery should also be treated with thiram or captan at 4-5 g/sq. mt. area. Nursery bed should be irrigated at 15-20 days before sowing and covered with 250 gauge transparent polythene for soil solarization.

Bulblets are sown on raised beds or in flat beds depending upon the soil by following the broadcasting method. Best time of planting the bulblets is first fortnight of January to early February depending upon the weather condition of the area. Planting on raised beds or on both sides of ridges in BBF (Broad Band Furrow) system is recommended for better bulb development and yield. Best time of planting July-August in Maharashtra and August in northern parts of country. Planting of oversize bulblets reduces the quality of produce.

Dipping the bulblets in fungicide carbendazin at 0.1 per cent and insecticide monocrotophos at 0.1 per cent solution before planting helps in better establishment of bulblets.

Planting

Planting should be done at 10 cm from line to line and 10 cm from plant to plant that is, 10 x 10 cm spacing is recommended.

About 100 kg N, 50 kg P and 50 kg K is required for one hectare. Use of stomp at 3.5 lit/ha or goal at 0.15 kg /ha applied 3 days after sprouting of bulbs in field plus one hand weeding at 35-40 days give better results. Spraying cytozyme at 0.2 per cent at 15 and 45 days after planting was found effective.

(R. K. Singh, Assistant Director, email: singhrknbpgr@yahoo.com Mobile: 09881303443 and R.P. Gupta, Director, nasik@nhrdf.com mobile: 09850880668, NHRDF, Chitegaon Phata, Post-Darna Sangavi, Nashik, 422 003, Maharashtra.)

Availability of locally produced onions in West Bengal is set to improve starting this year.

The State Government is planning to supply seeds at subsidised rates to farmers to grow onions in the kharif season (June-end October).

The State currently produces onions only during the rabi season (mid November to April).

According to Pijush Kanti Pramanick, Director of State Horticulture Department, the improvement in availability of locally produced onions will also bring down prices.

West Bengal produces nearly 3.04 lakh tonnes onions during the rabi season. The estimated demand is pegged at around 3.33 lakh tonnes. The shortfall of close to 29,000 tonnes is currently met through imports from Maharashtra and Karnataka.

“Once we start producing the kharif onions, our overall production will improve and in the next three-to-four years, we will turn self-sufficient to meet our demand,” Pramanick told Business Line. The State Government has already identified some farmers in the districts of Bankura, Purulia, West Midnapore, Birbhum, Murshidabad, Nadia, North 24 Parganas and Hughli for growing onions. “We plan to bring close to 600 hectares of land under onion cultivation during this kharif season. Nearly 15-17 tonnes of onion can be produced on a hectare,” he said. The rabi onions start coming into the market around February-March and is available till end of August.

Once the stock of locally produced rabi onions gets deplete, post-August, onions from other States start flooding the local markets, thereby, pushing up prices, he pointed out.

Pilot Project

The State Horticulture Department in association with the National Horticultural Research and Development Foundation (NHRDF) had launched a pilot project about two years back to look into the possibility of cultivation of kharif onions.

“We looked at the adaptability of onions grown in Nashik and other parts of Maharashtra, in West Bengal. The pilot project was successful, so we decided to go on a massive drive to grow onions during kharif season,” he said. The State Government would be procuring the seeds developed by NHRDF Nashik, which are most suitable for Bengal, and supply it to the farmers at subsidised rates, he said.

Onion prices are likely rule stable around current level of Rs 800 a quintal at least until the end of this month with supply likely to match demand.

“Currently, quality onion commands Rs 850-900 a quintal, while the fair average quality is quoting around Rs 800,” said a trader over phone from Nashik.

At the Lasalgaon Agricultural Produce Marketing Committee (APMC) yard, the modal price or the rate at which most trades took place was Rs 811 a quintal with nearly 1,600 tonnes arriving.

“Some farmers are bringing their produce to the market as the current price is good, while some are holding back expecting a rise,” said R.P. Gupta, Director of National Horticulture Research and Development Foundation.

During the same time last year, prices were lower than Rs 400.

“Farmers are happy with Rs 800 a quintal now. Very rarely do prices rule at this level during peak arrival of the rabi crop,” Gupta said.

While a section of the trade said that arrivals were of average quality, another section said that good quality onions were arriving in markets.

Gupta said though the area under rabi onion was 20 per cent lower this year, higher productivity has made up for the loss.

“Productivity is some 15-20 per cent higher this year,” he said.

A long winter, good sunshine and no rains around the time when the crop was maturing have all led to higher yield this year.

Exports, on the other hand, are also good with demand continuing for West Asian countries.

The wholesale onion markets in the district resumed auctions from Tuesday after a week's gap, with prices going up by nearly 10.52% as compared to last week.

The onion auction in Lasalgaon and Pimpalgaon agriculture produce market committees (APMCs), the main onion markets in the district, were closed from March 27 to April 1 as traders had to complete their financial accounts for fiscal year 2012-13.

The average wholesale onion prices in the district APMCs, which had been in the range of Rs 901 to Rs 951 a quintal on March 25, were in the range of Rs 951 to Rs 1,051 a quintal on Tuesday.

Average prices increased by Rs 50 and Rs 100 per quintal in Pimpalgaon and Lasalgaon APMCs respectively, as the supply was lower as compared to demand, market sources told TOI. The prices are likely to increase by around 25% in the next three-four weeks, the sources said.

They said that supply of onion to the markets has fallen slightly as farmers are storing the crop instead of bringing it to the market. The crop arriving in the district APMCs is the summer crop, which is harvested during April and May. The shelf life of the summer crop is six to seven months and hence, farmers have started storing it, hoping to get better prices later.

The average wholesale prices in Lasalgaon APMC, which is the largest onion market in the country, were recorded at Rs 1,051 a quintal on Tuesday. The minimum and maximum rates were recorded at Rs 700 and Rs 1,176 a quintal respectively. Around 15,000 quintals of onions were auctioned at the market. In Pimpalgaon APMC, the average wholesale prices were recorded at Rs 951 a quintal on Tuesday. The minimum and maximum rates were recorded at Rs 670 and 1,125 a quintal respectively. Around 12,000 quintals of onions were auctioned at the APMC.

Pakistani importers are reported to have started to import onion from India to offset a shortage because of the gap in domestic production, sources told this correspondent on Monday. They said that as many as 300 containers had reached Karachi, while import orders had been placed for 500-600 more containers to meet the local demand.

The massive import, sources said, was the result of the gap in crop harvests of Sindh and Balochistan. According to market sources, local onion was being sold at a higher rate, ranging between Rs 1,800 and Rs 1900 per 40 kilograms, against the imported variety, which was of better quality, which was being sold at Rs 1,900-Rs 2,000 per 40 kilograms. Sources claimed that if they had not started importing onion, its price would have jumped to an unaffordable level.

The gap between harvesting onions in the two provinces was between 30 and 40 days. Stressing the need for an alternative mechanism to cope with this huge gap in harvest times, sources said that that the country was devoid of a proper storage facility. They said that there was need to make arrangements for prolonging storage of onion, adding that if there were proper facilities, there would hardly be any need for imports.

Onion production in Sindh, lasting between October and March, not only caters to the overall domestic demand but also kept the commodity's prices at a stable and affordable level. The import from India would continue till March-April when the Balochistan crop would be available for domestic consumption.

Talking to Business Recorder, Waheed Ahmed, the Chairman of All Pakistan Fruit and Vegetable Exporters, Importers and Merchant Association (PFVA) said that to meet the gap between harvests of onion crops, the country should ensure storage facilities, adding that the government should also encourage production of various varieties of onions. He said that the quality of local onion was fast deteriorating, which was forcing consumers and traders to opt for better quality imported varities. He urged the government to reduce existing duties on imports of agricultural products to provide people with kitchen items at affordable prices. According to him, bananas were also being imported from India on a massive scale.

The government today said there is no proposal to ban export of onion and its prices in the domestic market are showing a declining trend.

"There is no proposal to ban export of onion," Minister of State for Agriculture Tariq Anwar said in a written reply to the Rajaya Sabha.

The untimely rains in different onion growing areas, which has affected the crop and its supply chain, has contributed to sharp increase in its prices, he said.

A sharp increase in onion prices was seen during three months till January, he added.

However, there has been a declining trend in onion prices since the beginning of the current month.

The wholesale prices have dropped to Rs 16/kg today in Nasik, Maharashtra, from Rs 25/kg in the beginning of the month, as per the data maintained by government research body NHRDF.

Similarly in the national capital, wholesale prices have declined from Rs 25/kg to Rs 17.50/kg in the review period.

Prices of vegetables such as onion are governed by market forces of demand and supply, cost of transportation, cost of storage and rising demand among others, Anwar said.

Due to tight supply, onion exports have shown a declining trend since November, 2012. The shipments fell by over 40 per cent to 83,044 tonnes in January, as against 1,47,255 tonnes in the year-ago period, according to the NHRDF data.

According to the Nasik-based National Horticultural Research and Development Foundation (NHRDF), the area under onion crop is down by 10 per cent from 10.87 lakh hectares this year. But the overall production is expected to be the same at last year's level of 174 lakh tonnes.

Maharashtra, Karnataka and Gujarat are the top three onion growing states which have suffered drought.

Seventeen years of painstaking effort in developing and maintaining a new onion variety by a small farmer, Balwan Singh from Haryana, bore fruit when the National Innovation Foundation – India (NIF) under the leadership of Prof Anil Gupta recognised this variety at the national level. NIF honoured the farmer in its sixth biennial award ceremony at the Rashtrapati Bhavan, New Delhi recently.

This onion variety named “Balwan Pyaj” has a longer shelf life as compared to other commercial varieties due to its tightly adhered bulb skin.

The variety’s yield per hectare is over 30 tonnes, and is believed to be resistant to pests and diseases occurring in onion. Its dark red coloured globular shaped bulbs with about 50-60 gm weight, appear more attractive than common ones with firm, bright red coloured, bulbs yielding about 20 tonnes per hectare. That is the new variety developed by the farmers yields nearly 50 tonnes.

Many years back Mr. Balwan Singh brought some onions from a neighbouring village. He observed the bulbs to be large in size, red in colour, and the skin to be tight.

Being an experienced farmer, he knew that good quality plants yield good fruits bulbs hence he started grading and breeding this particular onion through selection, considering parameters such as the plant health, tightly adhered bulb skin, size and well shaped red coloured bulbs. Year after year, he repeated the same process to purify the variety and stabilise its characteristics. After many years of perseverance he could finally develop this variety.

The family also maintained the year wise performance data for the crop, which exhibited good performance. “It is just persistence that kept him going. He did not do it for honours or recognition,” says Prof Gupta about the entire process.

NIF facilitated that the testing of variety at the Vegetable Research Farm, Department of Vegetable Science, Choudhary Charan Singh Haryana Agricultural University, Hisar, Haryana during 2010-11. According to the results, the onion variety showed significantly higher yield (of more than 30 tonnes/ha), bulb weight and bulb diameter, than existing variety named Hisar-2.

Other features, which distinguish this variety, are dark green colour of foliage, good thickness of rings, a predominant axis and symmetrical cross section.

The farmer has distributed the seed of his variety to about a thousand farmers of Haryana and around. He specially recognises the support of scientists of the Haryana Agriculture University who guided him from time to time, and helped him with technological updates.

NIF also provided him an opportunity to display his variety at the Innovations’ Exhibition at the President House in 2011.

He has been participating in different agricultural exhibitions of agricultural products and winning prizes as well. His work has been covered in local as well as national media.

“There are hundreds of brilliant solutions to tackle everyday problems in many villages. What we need is an honest effort to look out for them and then the patience to try them. In fact many of these solutions are simpler and more effective than those provided by formal science. In some cases such grassroots solutions even extend the frontiers of science,” says Mr. Gupta.

The foundation has been systematically documenting several hundreds of innovations from different parts of rural India and providing the innovators with a platform to present their findings. Many of these grassroots developments though appearing to be simple can be easily replicated and used by others.

The government on Friday completely liberalised onion exports, allowing shipments without the bar of a minimum export price, a move which would further boost exports of the vegetable.
Earlier, onion exports were allowed without Minimum Export Price (MEP) till July 2. "Export of onions is allowed without any MEP," a notification by the Directorate General of Foreign Trade (DGFT) said here. According to experts, the decision would help in protecting farmers' interest. India's onion exports rose by 15 percent in last fiscal at 15.48 lakh tonnes against 13.40 lakh tonnes in the previous year on higher production, which increased to 157.48 lakh tonnes from 151.17 lakh tonnes. Onion prices are currently ruling about Rs 15 per kg in the retail markets.

The first onion special train carrying only onions left Kherwadi station in Nashik district on Monday to reach Chitpur in West Bengal. The train, an initiative of National Horticulture Board and Container Corporation of India, set on its maiden journey as a pilot project. The train contains 90 container boogies and each container has a capacity to carry 17 tons of onions. As such in its pilot run the train from Kherwadi carried 1530 tons of onion to West Bengal. Kherwadi railway station is situated in Niphad taluka, where most of the onion in the region grows. Onion farmers from Niphad, Pimpalgaon Baswant, Lasalgaon,and other places loaded their produce on the train. The train initiative is taken by the central government so that onion farmers get fair price for their crop and it is transported in minimum time. The closed containers will also protect the onion from rains. Container Corporation of India will pay Indian Railways Rs25,000 plus service tax for the services provided. The train will prove beneficial for the onion farmers, it is hoped. After its trial run, amendments if any will be made after due discussion with the farmers, traders and railway officials.

The government on Friday completely liberalised onion exports, allowing shipments without the bar of a minimum export price, a move which would further boost exports of the vegetable.
Earlier, onion exports were allowed without Minimum Export Price (MEP) till July 2. "Export of onions is allowed without any MEP," a notification by the Directorate General of Foreign Trade (DGFT) said here. According to experts, the decision would help in protecting farmers' interest. India's onion exports rose by 15 per cent in last fiscal at 15.48 lakh tonnes against 13.40 lakh tonnes in the previous year on higher production, which increased to 157.48 lakh tonnes from 151.17 lakh tonnes.
Onion prices are currently ruling about Rs 15 per kg in the retail markets.