This time, onion will leave you smiling

But this time round, as the National Horticulture Research and Development Foundation (NHRDF) points out, onion prices have remained stable as storage across the country has steadily gone up.

In 2005, NHRDF figures indicate, only 18.90 lakh metric tonnes of onions were stored in the country. This year, that number is estimated to be nearly 24 lakh metric tonnes. ‘‘We ran a sustained campaign for nearly six months encouraging farmers to store their onions,’’ explains Dr R P Gupta, Director of the Nashik-based NHRDF. ‘‘Subsidies were also given to farmers wanting to create their own storage spaces on their farms.’’

But the campaign has not been the only reason for this six-lakh metric tonne jump in onion storage. Farmers across onion-growing belts have been hoarding in the hope of a better day at the mandis.

Since December 2005, prices of onions have consistently plummeted. From highs of Rs 1,177 per quintal in November 2005 at the Lasalgaon mandi, prices dropped to a low of Rs 549 by December. The slide continued right into the New Year, forcing marginal farmers in Maharashtra to distress sales.

However, through the distress phase, it now appears that many farmers simply stored their crop, waiting for a better price at the mandi. ‘‘This year more storage is expected due to prevailing low prices,’’ forecasts the NHRDF’s latest onion status report. ‘‘There are favourable climatic conditions prevailing for storage and also farmers are anticipating higher returns from their stored crop.’’

The other factor that may help control the fluctuating price of onions later in the year is the quality of the onion bulbs being put away in storage. Farmers and agricultural officials say the bulbs harvested this April are of a superior quality, with longer shelf life. Therefore, larger quantities of this crop are expected to be in storage.

While Maharashtra is expected to store over seven lakh metric tonnes of its Rabi crop, the dry summer in Gujarat has increased their storage to nearly three lakh metric tonnes. In Madhya Pradesh, the Ujjain, Shajapur and Devas belts are stocking up while both Karnataka and Tamil Nadu are giving indications of superior quality onions being available in the lean season between September and November.

‘‘This trend spells good news for both the consumer and the producer,’’ says a confident Gupta. ‘‘Our forecast is that during the lean months, onion prices will be on the higher side, giving farmers a better deal. But at the same time, they will not spiral out of reach of the consumer’s wallet.’’

So far, in Lasalgaon, the country’s largest mandi, there has been a steady trade in onions. In April this year, 2,87,632 quintals of onions made it to the mandi and the average price settled at Rs 232 per quintal. In May, the arrivals increased to 3,31,431 quintals and the average price dropped to Rs 204 per quintal. Into the third week of June, the prices have remained stable.