Growers oppose ban on onion exports

Onion growers in Nashik, the epicentre of the commodity’s output in the country, oppose the government’s ban on its export, fearing more of a decline in prices if the bar continues.

On Wednesday, the average wholesale price came down to Rs 1,900 a quintal in the Lasalgaon wholesale centre, 50 km from here and the country’s largest, against Rs 2,351 a qtl yesterday. In the retail market here, good quality onion was sold out at Rs 35-40 a kg, while the smaller size was sold out at Rs 20-25 a kg.

Farmers’ association spokesmen say export declined by 21.15 per cent to 1.025 million tonnes over the first nine months of the current year, 2010-11, against 1.3 mt of export during the same period last year.

“The produce has come down to five to nine quintals per acre due to the unseasonal rains that had badly damaged crop in Nashik district. Growth costs were Rs 25,000 per acre. Onion prices have already started declining in wholesale markets in the district after the export ban and are expected to fall more if the ban continues, as arrival of new crop will begin to a large extent in the next three-four weeks,” they told Business Standard.

Shankar, a grower, who sold out his commodity in the Lasalgaon market on Wednesday, said: “I had expected a better crop this season, but unseasonal rains shattered my hopes. I got very low produce, of 52 quintals on six acres and total expenses were Rs 1.25 lakh. I sold them at Rs 1,700 a qtl, amounting to Rs 88,400. I suffered a net loss of Rs 36,600.”

“Arrival of new crop has already begun in Gujarat and Karnataka. Around 15,000 quintals are being sold out daily by farmers at the wholesale market in Mahuva (Gujarat) and 7,000 qtls a day at Hubli (in Karnataka). In Maharashtra, regular arrival of new crop is expected to begin in the next three-four weeks,” C B Holkar, Director, National Agricultural Co-operative Marketing Federation of India, told Business Standard.

“Onion export is expected to fall by 33 per cent to 1.2 mt in the current year, against 1.8 mt last year. Export has decreased by 275,000 tonnes to 1.025 mt in the first nine months of the current year, due to lower supply of crop,” he added.