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Market News
Centre pegs onion output at record high of 31.7 mt for 2021-22 season.
Oct 31, 2022
Onion production during the 2021-22 crop year has been pegged at a record high of 31.27 million tonnes (mt), though it is lower than the second advance estimate of 31.7 mt, the Ministry of Agriculture said in a statement today.
The record output comes on the heels of a record 1.94 million hectares (mh) being brought under the bulb during the crop year that ended in June. Farmers felt encouraged to plant onions last year after two years of good returns.
In 2019 and 2020, onion prices ruled high with retail prices topping Rs.100 a kg farmers planted onion on 1.91 mh in 2020 and improved it further to 1.94 mh in 2021. In 2019 and 2020, onion prices soared after the crop was affected by unseasonal rains during October-December.
Prices slump
However, the high production has resulted in onion prices plunging to a five-year low last month with exports being affected due to slack demand.
Currently, the weighted average price of onion in Maharashtra, the primary source of the vegetable for the country, is Rs.1,868 a quintal against Rs.2,321 during the same period a year ago.
The statement said potato production last season declined to 53.39 mt from 56.17 mt the previous year — a 4.5 per cent drop. It is lower than the second advance estimate of 53.60 mt.
Bengal factor
Last year, the potato crop was affected by rains in Bengal resulting in a lower production of the spud. The ministry lowered the area under the crop marginally to 2 mh from 2.21 mh.
The lower production has resulted in potato prices increasing. The national weighted average price of the spud, currently, is Rs.1,863 a quintal with the price in West Bengal ruling at Rs.2,174. During the same period a year ago, the weighted average price was Rs.1,223 and Rs.1,442 respectively.
The output of tomato, the other key crop under the Centre’s focus apart from potato and onion, dropped four per cent to 20.33 mt against 21.18 mt the previous year. This is a tad higher than the 20.30 mt projected in the second advance estimate.
A drop in the acreage of tomatoes also pulled down the production. The Agriculture Ministry pegged the area under the crop at 8.41 lakh hectares against 8.45 in 2020-21. In the second advance estimated, it had projected the area at 8.3 lakh hectares.
Veg, fruits estimate
Currently, the weighted average price of tomato is Rs.1,874 a quintal with prices in West Bengal and Tripura being the highest at over Rs.5,000. The vegetable’s price was Rs.2,428 with prices ruling higher than other States in Bengal, Odisha and Tripura.
The Ministry said the total horticulture production is estimated to be 342.33 mt in 2021-22, another record high. It is up by about 7.73 mt or 2.3 per cent year-on-year.
Overall, the output of vegetables is estimated to be 204.84 mt against 200.45 mt in 2020-21, while that of fruits is projected at 107.24 mt compared with 102.48 mt.
thehindubusinessline.com
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