Exporters are waiting for the arrival of summer onions in the market, since the red onion variety currently available is not considered suitable for exports because of its shorter shelf life. The summer onions are expected to hit the market in the middle of March.
As per data available with the Agricultural and Processed Food Products Export Development Authority (APEDA), onion exports dropped 24% in the April-November period of the current financial year to 10.55 lakh tonne from 13.92 lakh tonne in the same period last year.
Onion exports from Maharashtra have declined 35% from 6.72 lakh tonne between April-November FY21 to 4.34 lakh tonne during the same period in the current fiscal. The state had exported at least 8 lakh tonne in 2020-21, while the figure for 2019-20 was 7.29 lakh tonne. Maharashtra is among the largest cultivators of onions in the country.
PK Gupta, acting director, National Horticultural Research and Development Foundation, attributed the decline in exports to the higher prices in the domestic market. Onion prices in international markets ranged from Rs 18.75 to Rs 22.50 per kg, while prices in domestic markets were between Rs 20 and Rs 25 per kg. The government has not banned onion exports, but the lack of benefit has made exporters shy away, he said.
Ajit Shah, president, Horticulture Produce Exporters Association, said onion prices should reduce once the summer crop starts arriving in the markets. At present, the red onion variety is selling for Rs 2,500 per quintal in the Lasalgaon wholesale market. “Onion from Pakistan is being preferred by other markets since it is available for $350 a tonne, while Indian onion is $550 per tonne. The season in Pakistan is about to end, while the Indian summer onion crop season begins soon and can continue for three to four months. This is when exports are likely to pick up,” he said.
Freight charges almost doubled from Rs 5 per kg to Rs 11-12 per kg this financial year, which also affected onion exports. The availability of containers was also an issue, Shah said. Besides, the quality of onions was also poor as most of the produce was affected by unseasonal rain in Maharashtra, he said.
Suvarna Jagtap, chairperson of the Lasalgaon Agriculture Produce Market Committee (APMC), said onion arrivals have reduced to around 20,000 quintal a day from nearly 40,000-50,000 quintal at the APMC and its sub-yards. This time, Madhya Pradesh and Gujarat have also reported a good crop and therefore prices should remain stable, she said.
