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With considerable fall in onion prices in the last two months, dehydration units in Gujarat are doing brisk business. Dehydration units were finding it tough to sustain business, when prices of the commodity had peaked to Rs 85-100 a kg in November-December last year. According to industry sources, though the season commenced late this year, all dehydration units were operating in full capacity, as of now.
Prices of onions in the retail market had surged to Rs 85-100 a kg in select regions of the country last year. However, in Gujarat, the price peaked to Rs 85-88 a kg in September-October 2013. But now, prices have reached lower levels of Rs three-nine a kg in wholesale market due to higher supply.
Per day arrival of onion in Gujarat market is estimated between 400,000 and 450,000 bags (50 kg a bag) mainly in Bhavnagar, Mahuva and Gondal blocks, where most of the onion dehydration units are located.
"We were worried because of the soaring prices of onion. This year, season started late but still the dehydration units are doing well. All onion dehydration units are working in full capacity since last two months," said Asgar Chattariya, secretary of the All-India Dehydration Association.
According to industry sources, dehydration season generally begins in December, but this time, it began one month late in January.
Chattariya said, "Currently, the demand is normal but we are hopeful for some improvement in March, as Indian dehydrated onion is cheaper than those produced in countries like China." India's per day production of dehydrated onion is around 200-250 tonnes and the demand at present is at the same level.
Vitthalbhai Koradiya, managing director of Maharaja Dehydration Pvt Limited in Mahuva, Bhavnagar, said, "Due to higher production of onion in India, its prices have come down drastically in last two months and this has helped us survive. The international demand has also gone up hence we are doing good business."
With favourable climatic conditions this year and enough moisture in the soil, the agriculture ministry has estimated 13 per cent rise in output at 19 million tonnes against 16 million two years ago.
Ghanshyam Patel, chairman of Mahuva Agriculture Produce Marketing Cooperative (APMC), said, "At current price level, profit of farmers is maintained. But, if onion price fall further farmers could face losses." In India, there are 90 active onion dehydration units. Of these, 75 units are located in Gujarat mostly in Bhavnagar, Mahuva, Vadodara and Gondal (Rajkot). The country has about 30 export oriented units of onion dehydrated products while the rest are suppliers.
In this rabi season, sowing was done in 72,600 hectares against 17,500 hectares in the corresponding period last season.
The onion is cultivated in both kharif and rabi seasons. In comparison with the average sowing area of onion for the last three years, the sowing was up 136 per cent. The three year average for onion sowing is 53,600 hectares, against which sowing this rabi season has been in 72,600 hectares.
This is the second highest sowing for onion in the last decade. Highest onion sowing was recorded in 2005-06 when sowing was done in 73,300 hectares.
