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Export ban boon for onion dehydration units.
Feb 15, 2024

Farmers may be crying over the ban on export of fresh onions imposed by the government. But India’s onion dehydration hub, Mahuva, is all smiles these days.
The dehydration units in this coastal town of Bhavnagar have started functioning full throttle 40 days in advance due to the easy and cheap availability of fresh onions.
Mahuva processes 90% of fresh onions in the country and bulbs from Gujarat, Maharashtra, Karnataka, and other states are sent here.
 
Factory owners believe that they will process 20% more stock compared to last financial year and are hopeful of bagging good export orders.
 
Vitthal Koradiya, an exporter of dehydrated onions, said, 'Generally, the processing units start operation by the end of Feb or first week of Mar after the arrival of fresh stock. However, due to the export ban, there is a huge availability of stock, and around 40 to 50 big units that have a huge customer base abroad started operations from Jan 8.'
All 125 units are expected to start functioning fully in a fortnight. 'There is a 10% rise in the demand for processed onions from the Gulf countries,' Koradiya added.
 
The processing units are currently getting 50,000 to 70,000 bags (each of 50 kg) per day for dehydration while they require two lakh bags per day to start all 125 units.
India, one of the biggest exporters of onion in the world, imposed a ban on the export in December last year to control the skyrocketing prices in the local market. The price per kg in the local market crossed Rs 80 per kg before the ban but it has dropped to Rs 30 per kg.
Manoj Ram, president of All India Vegetables Dehydration Association said, 'The fresh onion prices in the wholesale market were between Rs 400 to Rs 450 per 20 kg before the ban. At present, we are getting fresh onions for around Rs 225 to Rs 260 and expect this to drop to Rs 200 by the end of Feb.'
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timesofindia.indiatimes.com

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