Onion dehydration industry stares at reduction in season by two months

The season might be reduced to four months from the usual six months at onion dehydration unit located in Saurashtra

Higher onion prices arising out of short supply might mean a smaller season for the onion dehydration industry this year. According to dehydration units in Saurashtra, mainly concentrated in Mahuva taluka of Bhavnagar district, in Gujarat, the season might be reduced to four months from the usual six.

“White onion, which is generally used for dehydration, will reach the markets in December. We will begin purchasing by December-end or January beginning. We expect production to decrease because of delayed and weak monsoon and lower sowing. As a result, the season may be short by two months this time," said Kirit Mehta, president, All India Dehydration Association.

According to industry sources, arrival of kharif onion has not yet begun from other producing states such as Maharashtra and Karnataka to Gujarat. Now, only 10,000-12,000 bags arrive a day at the Agricultural Produce Marketing Committee (APMC) at Mahuva, down from the usual 17,000-18,000 bags.

Under normal circumstances, onion dehydration commences in January and continues till July. However, the season is expected to end by May this time because of low production and unfavourable price.

The price of dehydrated onion in the international market is between Rs 120 and Rs 130 a kg. The industry needs to reduce the price to Rs 100-110 a kg during the season, for which the wholesale price in the domestic market of onion should be below Rs 10 a kg.

Asgar Chattariya, secretary, All India Dehydration Association, said: “Price is the biggest factor for the dehydrated onion industry and we have to maintain both the domestic as well as the international markets. If we do not maintain prices, we will lose business in the global market.”

Any price above Rs 10 a kg in the domestic market is not viable for the dehydration industry. Onion price is in the range of Rs 7-12 a kg in the wholesale market.

He said, “If the price of onion goes above Rs 10 a kg during the current season, it will spell trouble for us and in that scenario, we have no choice but to close production before time.”

The onion dehydration industry depends on the market as it has no big market in the country.

India has 75 dehydration units, of which 65 are located in Mahuva. Industry experts say while 15 per cent of dehydrated onions is consumed domestically, the rest is shipped to Europe, the US and Russia, among other countries.

Industry sources say 10 kg of fresh onion gives 1 kg of dehydrated onion, as the raw commodity contains around 90 per cent of water. One kg of dehydrated onion turns into 10 kg once put into water.