Dehydration Onion Prices Likely to Increase
Due to strong export demand, onion prices may increase by $0,06 per kg, according to Vitthal Kordia. Despite decreased income from onions, prices have risen due to good demand and limited supply in some markets. Currently, white and red onions are priced at $0,22-0,24 per kg. The demand for white onion seeds has led to some of the produce being diverted for seed purposes. White onion planting occurs in August-September, and improved monsoon conditions are expected to enhance planting.
White onion farmers have received good prices throughout the year, averaging $0,14-0,18 per kg, encouraging large-scale sowing in the new year. Factories producing white onion kibble have closed after producing 80,000 tonnes this year, 8,000-10,000 tonnes above normal. The price of dehydrated white kibble is currently $1,74 per kg, with an expected increase of $0,06 per kg. Monthly exports of white kibble average 9,000 tonnes, totaling 36,000 tonnes from February to May. An estimated 5,000 tonnes of kibble stock will be carried over to the new season. Nashik yellow leaf onions, with a short shelf life, are being sold at an average price of $0,12 per kg. Approximately 10,000 tonnes of kibble are expected from yellow leaf onions, which is less than the usual 5,000 tonnes annually.
Government Export Policies Could Influence Market Prices
Onion prices have improved due to ongoing export trade, supported by export concessions. The price of onions in Nashik averages $0,24 per kg, a $2,40-3,60 increase in recent days. Despite a 40% duty on onion exports and a minimum export price of $6,60, Indian onion exports to Bangladesh, Sri Lanka, Dubai, and other countries have decreased significantly. Lower Indian onion prices compared to other countries have supported export activities. Farmers have faced significant losses due to the delayed export decision by the central government, which stopped exports for 8-9 months, resulting in low prices for farmers.
After the upcoming elections, the new government may relax export restrictions, potentially increasing onion exports and improving farmer prices. This year’s summer onion crop is less than last year’s, but still exceeds the country’s requirement. Due to low prices, farmers have stored more onions. If the government lifts the export ban soon, farmers will get relief. However, if it rains, stored onions will have to be sold quickly due to limited storage space. Better monsoon conditions are expected to improve onion sowing, with preparations already underway for sowing in July.
The onion market is experiencing a price increase due to strong export demand and potential changes in government policies. Improved monsoon conditions and better export conditions are expected to drive further price increases and support farmer income.
