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Onion exports speed up, demand from Gulf countries heats up markets.
Feb 20, 2023
After plateauing for two years, onion exports have accelerated thanks to the demand from West Asia. In the 2022-23 fiscal, India has so far exported 15.19 lakh tonnes of the bulb, as compared to the 15.38 lakh tonnes it had exported during the whole 2021-22 fiscal.
Exports account for around 10-15 per cent of the total onion produced in the country, with Maharashtra, Karnataka and Gujarat being the leaders. Kharif, late kharif and rabi onions are exported, and Indian onions have demand mainly from West Asia, Sri Lanka, Bangladesh, Malaysia and Nepal.
Suresh Deshmukh, a commission agent operating out of the Dindori’s wholesale market, said export orders have started pouring in, right from the start of the current fiscal. Indian onions at export markets are now trading at Rs 15-16/kg FOB, while the bulb is trading at Rs 10-11/kg in the domestic market. 'Quality-wise, we have no problem, and thus the demand for onions is good in the international markets,' he said.
While the Sri Lankan market has suffered from the economic collapse of the nation, demand from other countries has been picking up. Thanks to the back-to-back bumper crops, domestic and export-quality onions have been readily available. Over the last three fiscals, exports have been around 15-16 lakh tonnes.
Meanwhile, farmer organisations have asked for price stabilisation funds to ensure wholesale markets do not see a complete collapse of onion prices.
Maharashtra is the leader in the production of rabi onion, and farmers from Nashik take the production lead. Deshmukh talked about a possible collapse of prices once the new or summer onion hits the markets. This onion, which is transplanted in December-January, is harvested post-March. Thanks to the lower moisture content in the bulb, this onion is malleable for storage. Farmers generally store onions in their on-field storage structures to protect them from moisture and sprouting.
Deshmukh said thanks to the good rains, rabi acreage is at an all-time high, and the crop condition is also good. 'There are some reports of the corp being affected due to fungal diseases in some pockets, but that would not have much effect on the product,' he said.
indianexpress.com
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