THE ONIONOMICS OF INDIA

This year, the production of Kharif and late Kharif crops is estimated to be 52.06 LMT, which is about 26% lower than the previous year’s production of Kharif and late Kharif production of 69.91 lakh metric tonne (LMT).

In 2019-20, there was a 3-4 weeks delay in sowing as well as decline in sown area of the Kharif onion because of the late arrival of the monsoon. Further, untimely prolonged rains in the major growing states of Karnataka, Maharashtra and Madhya Pradesh during the harvesting period — September / October — caused damage to the standing crops in these regions. These two factors adversely impacted the production and quality of the

Kharif crops. The rains in September/October also affected the transportation of the crop from these regions to consuming areas. It led to limited availability of the Kharif onion in the market and has put pressure on its prices.

Onion is a seasonal crop with harvesting period of Rabi (March to June), Kharif (October to December) and late Kharif (January to March). During the intervening period (July to October), the market is fed by stored Rabi onions, revealed the papers the government tabled in Parliament during the winter session on Onion price issue.

The Ministry of Consumer Affairs, Food and Public Distribution accepted in Parliament that there is no proposal to provide onions to the customers at a uniform rate in all the states across the country. The minister informed the house that the government on September 29, 2019, had imposed stock limits on traders across the country — 100 quintals on retailers and 500 quintals on wholesale traders under the Essential Commodities Act, 1955. Further, the Centre had urged state governments to hold regular meetings with the traders of onions at the state and district levels to prevent hoarding, speculative trading and profiteering, unfair and illegal trade practices like cartelling.

During the current year, total buffer stock of 57,372.90 MT of onion was created under the Price Stabilisation Fund (PSF).

Of this, procurement of 48,183.54 MT and 9,189.36 MT was from Maharashtra and Gujarat respectively. From this buffer, 26,735 MT was distributed to various states governments, other agencies and also sold in various mandis through open auctions. The remaining stock is accounted by disposal of 11,408 MT of low quality onion in the local market and losses due to prolonged storage, driage and spoilage due to limited shelf-life. From April to September 2019, the government had requested all the states/UTs to indicate their demand for onion from the aforesaid buffer stock under PSF at several forums/levels. Further, in November 2019, the government decided to procure/import onion. States/UTs were again requested to indicate their demand from these procured/imported stocks.

The government had on November 9, 2019, directed the MMTC to import up to 1 lakh MT of onion from various countries. For a wider participation, Indian embassies in the major exporting countries of Iran, Afghanistan, Egypt have been requested to facilitate such imports. Also, the government has directed NAFED to procure surplus onion from Rajasthan, Maharashtra for distribution in deficit states; however, the Centre allowed export of Bangalore Rose Onion upto 9,000 MT through Chennai Port till November 30, 2019 on the representations received from Karnataka to allow export of Bangalore Rose variety of onion.