)
Farmers, who were facing bleak prospects of low onion prices, are now rejoicing as the price of the crop has picked up in the last few weeks after unfavourable weather damaged onion in states like Maharashtra, Karnataka, Rajasthan and Madhya Pradesh.
Farmers from Gujarat, who had taken the risk of growing onion in summer, are also expecting good returns on the crop.
Industry insiders say hailstorm and unseasonal rainfall across many parts of India have damaged significant amount of crop. As a result, prices of best quality onion has risen from Rs 75 -100 per 20 kg to Rs 125-150 per 20 kg at Mahuva market in Gujarat. Average price has stood between Rs 60-120 per 20 kg.
Similarly, in Maharashtra's Nashik region, the country's onion hub, prices of best quality onions are ruling between Rs 200-240 per 20 kg while prices of damaged onion have been quoted between Rs 40-140 per 20 kg.
Purshottam Chothala of Nasik based Vishal Exports said, "Onion has seen massive damage due to hailstorm and untimely rainfall in many parts of India."
Traders had expected high onion production this year but unfavourable weather played spoilsport. Hardly, 15-20 per cent good quality onion arrives in the market, they claim.
Before unseasonal rainfall and hailstorm, India's onion output was estimated at record 19 million tonnes (mt) in 2013-14, against 17.51 mt in 2012-13 and 16.8 mt in 2011-12.
But now, the output is expected to decline by 10 per cent because of damage to the crop.
A Nashik based onion trader said, "Arrival of quality onion is very less which has reduced demand from exporters. Exporters are not buying on fear of rejection."
Ghanshyam Patel, chairman of Mahuva Agriculture Produce Marketing Cooperative (APMC), said, "At current price level, profit of farmers can be maintained."
Onion sowing in summer has increased 10 times from last year's sowing in the Gujarat.
The state agriculture department data suggests summer sowing of onion has been done on 11,100 hectares as against 1,100 hectares last year.
"Our production cost has increased as prices of fertilizer and seeds have gone up. Moreover, labour charges have also risen. This year, so far we are in loss but if price increases, then we will gain some profit," said Kishorbhai Vaghasiya, onion farmer from Kanavadla village of Junagadh district.
According to data compiled by the National Horticultural Research and Development Foundation (NHRDF), onion exports declined as the average export value realisation was Rs 9,300 per tonne in January this year much lower than Rs 18,600 per tonne in the previous month.
During the April-January period of 2013-14, onion exports have declined by 28 per cent to 1.10 million tonnes as compared with 1.53 million tonnes in the corresponding period of the previous financial year.
India exported 1.82 million tonnes of onion during the year 2012-13.
