Onion dehydration industry seeks govt support for building brand

A kg of dehydrated onion, equal to 9 kg of fresh onion, costs Rs 120; so, a kg of onion worth Rs 70-80, costs Rs 13 when dehydrated

In an attempt to cash in on rising fresh onion prices, the onion dehydration industry is seeking government assistance for advertising and brand building efforts in the domestic market.

Recently, the All India Dehydration Association sought government support in marketing, brand building and creating awareness about onion dehydration. The trade body has written not only to the agriculture departments of the Gujarat and Central governments, but has also approached Agriculturaland Processed Food Products Export Development Authority (APEDA) for support in the awareness campaign.

Unlike the prices of fresh onions, the prices of dehydrated onions are witnessing a declining trend due to weak international demand. With the industry's predominant exports being impacted, dehydration units are turning their focus towards the domestic front in order to market dehydrated onions as suitable substitutes.

Prices of dehydrated onion stand at Rs 120 per kg, equal to 9 kg of fresh onions, which means that a kilogram of onion costing Rs 70-80 now costs only Rs 13 when dehydrated.

Know your dehydrated onions

Roughly 9 kg of fresh onions yield 1 kg of dehydrated onions

The 1 kg of dehydrated onions again turns into 9 kg when put into water

Processed onion is almost six times cheaper than fresh

Only 10% of total dehydrated onion produced is consumed in India

Dehydration units are focusing on the domestic front, as exports sag

"The year has not been good in terms of exports for dehydrated onion units. This has forced the dehydrated onion makers to turn to the domestic market which accounts for only 10 per cent of the industry's total production. However, a general lack of awareness among consumers has resulted in limited sales of dehydrated onions in certain industries such as ready-to-eat foods, hotels and catering businesses in India," said Vitthal Koradiya, president, All India Dehydration Association.

The industry is of the view that if use of dehydrated onions increase, it may help also control fresh onion prices in domestic market.

However, while it intends to cash in on the current scenario to market dehydrated onions as a proper substitute, the commodity's high cost has played a deterrent. To battle the same, the onion dehydration industry has been seeking government support.

"Opting for advertisements for creating awareness through several means is not affordable for the industry, as most of the players are small. This is why we need government support," said Asgar Chhatariya, secretary of All India Dehydration Association.

Currently, about 15,000 tonnes stock of dehydrated onion is lying with the industry, which is equivalent to 135,000 tonnes of fresh onion. Industry sources say nine kg of fresh onions gives 1 kg of dehydrated onions, as the commodity contains around 90 per cent water. The one kg of dehydrated onions becomes nine kg when it is put back into water.

"We Indians prefer to eat fresh vegetables and, as a result, the use of dehydrated onion in domestic market is very limited. But we need to understand that it is like fresh onion, hygienic and affordable also," said Chhatariya.

About 14,000 tonnes of dehydrated onion have been exported between January and June, as against 48,000 tonnes in the corresponding period last year. The sector expects to export 3,000 tonnes more by December from the inventory.