Dehydrated onion exports decrease by 50% this year

Weak demand, huge carry-forward stock led the fall in export

Huge carry-forward and less demand led to decline in dehydrated onion exports from India by almost 50 per cent to 15,000 tonnes this year as against 30,000 tonnes in 2016. According to the industry, last year's exports were good due to lower prices, as a result many importing countries like Russia, Germany, France and USA also have sufficient stocks.

"Internationally, Indian dehydrated onion prices are lower than China and Egypt but as consuming countries have sufficient stocks, demand has come down by 50 per cent so far and will not gain much during this year. India's total export may not be more than 40,000 tonnes," said Vitthalbhai Koradiya, managing director of Maharaja Dehydration.

India had exported about 50,000 tonnes in 2016 and the industry is expecting to export about 35,000-40,000 tonnes. India is offering dehydrated onions at $1,650 per tonne while China and Egypt offer it in $2,000 a tonne.

On the other hand, the country is having about 20,000 tonnes of dehydrated onion carry-forward stock unsold with the producers. Exports begin in January every year and by June end, the country exports almost 85-90 per cent.

Asgar Chhatariya, managing director of Chhatariya Foods said, "As last year onion production was good and domestic prices were in control onion dehydration had increased to over 75,000 tonnes. After export and domestic consumption, there is about 20,000 tonnes unsold dehydrated onion available with the producers at the opening of the season in 2017."

There are 100 onion dehydration units in India and of it 85 units are located in Gujarat, 10 units are in Maharashtra. Usually at this time dehydration units runs in two shifts but this year, many units are running in one shift.

As per the first advance estimate of department of agriculture, onion production is estimated at 19.73 million tonnes for the year 2016-17, down by 6 per cent from 20.93 million tonnes in 2015-16.

Meanwhile, exports of fresh onion have nearly doubled between April-November 2016. According to Agricultural and Processed Food Products Export Development Authority (APEDA) data, in 2015-16, the total exports of onion between April-November was around 6,07,374 tonnes, while in this fiscal, between April-November 2017, the total exports were around 14,63,552 metric tonnes.