Record acreage may stop onion from peeling your purse

At least 15 per cent of the late kharif onion crop is feared to have been affected by the recent hailstorm and rain in growing areas of Maharashtra and Madhya Pradesh.

But a higher area under the rabi crop could save consumers from paying more for onion later this year.

“Hailstorm in growing areas of Maharashtra has affected onion that is ready for harvest. Only 10-15 per cent of the late kharif crop is on the field with the rest already harvested,” said RP Gupta, Director, National Horticultural Research and Development Foundation.

In Madhya Pradesh, rain is reported to have damaged the onion crop to some extent. “We think there could be at least 30 per cent loss in rabi onion. But the saving grace is that this time, the area under rabi onion is high,” said CB Holkar, member of National Cooperative Agricultural Marketing Federation.

“Some of the rabi onion crop due for early harvest could have been affected. Our loss estimate includes that,” said Gupta.

Output projection For the current season ending June, the Agriculture Ministry had estimated onion production at 19 million tonnes (mt) against 16.81 mt last season.

“Our projection is that the crop now could be 10-15 per cent lower than the 19 mt estimated by the Ministry,” Gupta said.

This means, the country could be producing between 16.15 mt and 17.10 mt of onion against the forecast of a record production.

A record 17.5 mt was produced in 2011-12.

This season, a record 10.88 lakh hectares have been brought under onion against 10.51 lakh hectares last year.

“The production estimate is based on the situation prevailing now. We hope the weather will be conducive for the rabi onion. If there is any unseasonal rain, then the quality of rabi onion will be hit,” said Gupta.

Rabi onion, harvested during April-May, has a larger shelf life and helps in keeping prices under control till the early kharif onion arrives in September.

“If the quality is hit, then we could face problems like last year when prices began to shoot up from July,” said Gupta.

Prices may not rise “We don’t think the crop loss will lead to spurt in prices, thanks to better production. Last year’s record prices encouraged a higher acreage,” said Holkar.

Last year, onion prices surged to a record of over ₹100 a kg in retail outlets, while in markets near growing areas such as Lasalgaon in Maharashtra’s Nashik district they ruled around ₹60.

On Monday, the modal price or the rate at which most trades take place was ₹725 a quintal after having topped ₹1,000 on March 10.

Exports With export enquiries for onion being normal, its shipments are unlikely to have any impact on prices.

“That exports will not result in higher prices can be gauged from the fact that the Centre has allowed private parties to ship onions last week,” said Gupta. So far this fiscal, some 11 lakh tonnes of onion valued at ₹2,644 crore were shipped against 18.22 lakh tonnes at ₹2,294 crore in 2012-13.

“Exports are at a normal 1-1.5 lakh tonnes a month currently,” said Holkar.

COMMENT NOW