In Maharashtra a record onion output of over 20 million tonnes in 2015-16 is expected; subsequently the prices of the vegetable across markets in the state have fallen to as low as R500/quintal from R800/quintal a few weeks back.
Farmers and traders from Nashik, the hub of the country’s onion trade, said that the rabi supplies are going to rise sharply in the next few weeks thus bringing down the prices further.
CB Holkar, a farmer leader from Nashik, said that farmers’ input cost for producing onion and bringing it to market is estimated at around R250 per quintal thus leaving out a small sum as income.
“At present, the condition of rabi crop is very good and if the climatic condition remains favourable, the production of onion will be 15-20% more compared to the previous year,” Nashik-based National Horticultural Research and Development Foundation (NHRDF) stated in its latest crop prospects report.
Of the annual onion production of close to 19 million tonnes in 2014-15, around 13 million tonnes were produced during rabi season. Out of total rabi output, which usually starts arriving in the market by the end of March and April, 7-8 million tonnes are stored for distribution till October and November months.
In a bid to boost exports, the government abolished the minimum export price (MEP) for onion in December 2015. At present the global onion price is in the range of $ 300-$ 350 per tonne.
The government imposed an MEP of $250 a tonne in May. This was raised to $425 a tonne in June to restrict export and increase domestic supply. In August last year, when the prices continued to rise, the government again hiked MSP to $700 a tonne thus virtually stopping exports.
India exports onion to countries that include Nepal, Bangladesh, Malaysia and West Asia.
The country exported around 700,000 tonnes of onion in 2014-15 from the total output of 18.9 million tonnes.
