Excess onion production has saturated the market, plummeting prices while humid conditions are likely to spoil the tuber crop.
Lasalgaon Agriculture Produce Market Committee (APMC) director Rajendra Dokhale said that there were estimated stocks of 25 to 30 lakh ‘unhal’ onion in Maharashtra, out of which about 50 per cent is in Nashik. The ‘unhal’ variety is the only onion that can be stored for several months.
“This onion currently traded in APMCs has been harvested in March-April and is already four months old. Monsoon, humid climate and insufficient storage facilities have affected the onion. The onion begins sprouting or becomes rotten. The production cost is Rs 1,000 per quintal while the market prices start from Rs 300 to a maximum of Rs 700,” Dokhale said.
When asked about the export of excess onion, Mr Dokhale said onion cannot be exported at short notice. “First, a deal has to be made with the foreign buyer earlier. Due to ambiguous policies, deals were not finalised,” he said. He also said that fresh crops of ‘red’ variety of onion had begun arriving in some markets of Andhra Pradesh.
Leading onion exporter Prakash Dayma said exports were slack due to overproduction. “The government has announced subsidy for exports but there are few markets. Excess production is not limited to Maharashtra. Gujarat and Rajasthan too have reported a bumper crop. The domestic requirement for onion is about 2 lakh metric tons while the production is double — 4 lakh metric tons,” he said.
Meanwhile, farmers will now have a choice of selling their produce in markets other than APMCs. Former Lasalgaon APMC chairman and current chairman of Lasalgaon Kharadi Vikri Sangh (LKVS), Nanasaheb Patil, said they had started their private market after deregulation of the agriculture market. “We will start buying onion after we have sufficient godowns. From Independence Day, we are starting auctions of tomatoes and vegetables,” he said.
