Onion prices may fall on likely high output

Onion prices are likely to drop as production is projected to go up by 14 per cent in 2007-08, with the area under onion crop likely to increase in the ongoing kharif season.

"Because of better prices this year, many farmers have started growing seedlings, which will be transplanted as and when the monsoon arrives," National Horticulture Research and Development Foundation (NHRDF) Additional Director Satish Bhonde said. Onion prices have shot up in the country in the last few days as production in 2006-07 lagged behind demand.

Bhonde said onion acreage is likely to go up by 12 per cent this year.

"We expect the production to be in the range of 7-7.5 lakh hectares in 2007-08 starting from the on-going kharif season as the acreage is likely to rise by 12 per cent," he said.

This would largely take care of the current domestic demand and export requirement, Bhonde added.

The Nashik-based NHRDF has estimated production to be about 6.6 million tonnes in 2006-07 against 6.8 million tonnes last year. According to government figures, onion output was 8.6 million tonnes in 2005-06.

Production in the current kharif season is likely to be at 1.5 million tonnes. As much as 20 per cent of the total output is produced in the Kharif season.

Onion is produced in three seasons "" kharif, late kharif and Rabi and harvested in July-October, January-March and April-June, respectively.

The major onion producing states in kharif season include Karnataka, Andhra Pradesh, Tamil Nadu, Rajasthan and Maharashtra.