Exports at all-time high, Centre to extend subsidy on onions

Initially, the subsidy was supposed to be till March end but has been extended to August end of this year.

Onion exports from India witnessed a steady rise with the year 2016 clocking the highest ever exports in the last 10 years. Total of 23,99,822.48 metric tonnes (MT) of the bulb was exported last year as against 11,14,418.13 mt of exports recorded in the year 2015. Singapore, Malaysia, UAE, Sri Lanka and Philippines have emerged as major export destinations for Indian onions. Khariff, late Khariff and now Rabi onions are going off shore.

However, the steady export has not done much good to the wholesale price of onions. Prices at Lasalgaon market in Nashik district continued to hover between Rs 5-6 per kg much to the distress of the farmers.

The state government had announced a special scheme to compensate for losses encountered by growers at the rate of Rs 1 per kg. In view of the low prices the crucial Rabi area has seen an alarming decrease.

As against the 3 lakh odd hectares which was sown for Rabi onions this year Maharashtra has seen only about 2.2 lakh hectares of onion plantation for the current year. Rabi onion feeds the market between March to October and is the only produce which can be stored.

Jagdish Apshunde, an onion exporter from Nashik wholesale market, reasoned that the glut due to bumper production of the last two years has not led to price rise. “However now that people will be storing their onions, there are chances of a slight price hike in the near future,” he said.