Onion exports surge 54% to 1.2 mn tonne

The country's onion exports in 2006-07 are seen surging to a record high of 1.2 million tonne, up 54 per cent from 778,134 tonne in the previous year, an industry body said today.

The previous record was in 2004-05, at 948,000 tonne.

"This year, export demand is high from Pakistan, Sri Lanka, and other neighbouring countries due to adverse weather in these countries," said RP Gupta, director of Nashik-based National Horticultural Research and Development Foundation. 
 

ON THE RISE
Year	Lakh tonne	Rs crore
2001-2002	5.07	412.00
2002-2003	5.45	445.20
2003-2004	8.29	672.35
2004-2005	9.44	817.49
2005-2006	7.70	620.27

Unseasonal rains and floods in Sindh province of Pakistan led to widespread damage of that country's kharif crop last year.

In April-December, India registered a 59.3 per cent rise in onion exports at 884,137 from 555,144 tonne in the same period a year ago.

In value terms also, April-December exports rose to Rs 727 crore from Rs 528 crore in the year-ago period.

The April-December figure is also higher than 778,134 tonne exported in 2005-06.

Due to the rise in overseas demand, onion prices in major markets in the country have risen sharply in 2006-07, compared with a year ago. In Lasalgaon and Pimpalgaon in Maharashtra "" major onion hub of the country "" prices have surged over 130 per cent to Rs 710-800 a 100 kg, compared with last year.

Today, onion prices in Lasalgaon and Pimpalgaon were at Rs 900-948 a 100 kg, up from Rs 307-308 a year ago. Compared with a month ago, prices in Lasalgaon have risen over 14per cent to an average of Rs 800 a 100 kg, while in Pimpalgaon they witnessed 9.2 per cent rise on an average, at Rs 825.

At the retail level, onion is being sold at Rs 15-20 a kg, depending on the quality, compared with the average price of Rs 5-6 that normally prevails in December-January period every year.

Despite the rise in overseas demand, domestic onion prices are likely to fall to Rs 400-500 a 100 kg in coming months on increased arrivals in spot market.

"Due to good prices in last few months, farmers have increased the area under late rabi cultivation, which will result in slightly higher production than last year," Gupta said. In 2005-06, domestic onion production was around 6 million tonne .

Late kharif crop from Maharashtra has started arriving in major markets, and the arrivals are expected to continue till May, traders said.

In Lasalgaon, daily arrivals are around 30,000 quintal, and are likely to remain steady in coming months.