Onion output may touch 8 MT this year

Onion output may touch last year’s level of about 8 million tonnes (MT) despite floods and drought in this kharif season, easing pressure on prices, which have risen up to 65 per cent in the last one month.

“I think onion output may touch the last year’s level of 7.5-8 MT this year,” National Horticulture Research and Development Foundation Director Satish Bhonde said, seeking to allay fears of a major shortage due to natural calamities.

Onion is selling at Rs 1,750 a quintal in the wholesale market of the national capital. It was Rs 1,063 a month earlier.

Commenting on the impact of drought on the crop, Bhonde said sowing in non-traditional areas in major producing states offset the losses in drought-affected areas. Also, farmers planted onions in most drought-affected regions, even though sowing was late, he said.

Though the standing crop in Karnataka and Andhra Pradesh may witness some losses due to floods, Bhonde said these might not be as dramatic as to cause a severe shortage as these states’ contribution was minimal. Most onion-growing areas of Maharashtra, the top producer, have not been affected by floods.

While Maharashtra produced 2.7 MT of onion last year, Karnataka accounted for just 370,000 tonnes and Andhra Pradesh 200,000 tonnes, according to official data.

The country produces about 40 per cent of total onions during kharif and late kharif seasons while the rabi season, starting October, accounts for the rest.

Concerned over the rise in domestic prices, the government has decided to discourage exports by raising the benchmark price for selling the edible kitchen bulb overseas by $85 a tonne to an average of $300-305 a tonne for the rest of this month.

“We are unlikely to change the MEP (minimum export price) for this month. We are keeping a close watch on prices and will respond as and when necessary,” said a senior offical with Nafed, which oversees onion exports.

India exported 991,000 tonnes of onions in the first half of this financial year as against 915,000 tonnes a year ago. It exported 1.76 MT last year.