Onion onions

Indian Onion Export Market heats up

Mintec Global
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Higher prices of Indian onions could impact exports. According to senior horticulture officials, between April and November 2021, exports have been in the range of 1,055 million tonnes. Onion exports in the 2020-21 season were 1,575 million tonnes, despite the pandemic.

Ajit Shah, president of Horticulture Produce Exporters Association, pointed out that the Indian onion is quoted higher in the export market and, therefore, exports have been affected.

Onion supplies from Pakistan are quoted at $300 a tonne, whereas the Indian stock is quoted at $500. Moreover, the Kharif crop was damaged due to heavy rains across onion-growing states, affecting the quality of the bulb and thus, impacting onion shipments from the country.

Onion prices have been on the higher side despite good arrivals. On Thursday, market arrivals at Lasalgaon, the country’s largest wholesale market for onion, were 17,000 kg with modal prices touching $0,28 per kg Prices were $0,30 per kg on Tuesday.

Typically, onions are exported throughout the year. Still, the rabi crop, which is sown in December- January and harvested post-March, comprises most of the export basket due to the lower moisture content and longer shelf life of the bulb.

Shah said that with the new crop expected to hit the market in the next fortnight, prices are likely to come down and India could then become competitive in the export market. So far, since the Indian onion has been more expensive, importing countries have been looking to Pakistan and Iran.

The late Kharif onion will soon be harvested. Traders said the rabi onion should be ready for harvesting from March onwards, adding that there is no cause for worry as onion production is expected to be good.

Govind Hande, technical officer, exports, Maharashtra Horticulture Department, said that the last couple of seasons has been bad both for the farmer and exporter due to incessant rains. Still, exports should begin to pick up from February onwards.

India exported 1,588 million tonnes in the 2017-18 season, 2,182 million tonnes in the 2018-19 season, 1,849 million tonnes in the 2019-20 and 1,575 million tonnes in 2020-21. In FY21, India exported $378 million worth of onions, 15% higher than the previous year.

The top exporting destinations are Bangladesh ($101 million), Malaysia ($62 million), the United Arab Emirates ($44 million) and Sri Lanka ($42 million). Indian onions have some established markets, especially in West Asian countries, Bangladesh, Indonesia, Sri Lanka, and the UK.

Source:  financial express