Now, growers flock to store their onion to cash in during lean arrivals season

Onion growers in Maharashtra have booked warehouses and storages nicely in advance this year to shop the bulb even as its costs have slipped even further to under ₹900 a quintal.

“Onion costs have dropped sharply from the highs witnessed in February. Rabi onions are expected to arrive from April fifteen onwards. By now itself, onion farmers have booked areas in warehouses to shop the bulb,” mentioned Agri Commodities Exporters Affiliation (ACEA) President M Madan Prakash.

Onion costs, which had zoomed to ₹4,000 a quintal in the third week of February this year, have nosedived to under ₹900. In accordance to Ministry of Agriculture and Farmers’ Welfare details, modal selling price of purple onion, usually harvested during early and late Kharif season, is now ₹850/quintal at Lasalgaon, Asia’s major marketplace for the bulb.

Higher shelf existence

In the course of this time of the year, arrivals of late Kharif onion proceed but traders say that Rabi onions have started to arrive. Due to the fact the Rabi crop can last for in excess of 6 months, their costs are ruling at close to ₹900.

Past year, costs at the identical time ended up at minimum ₹100 greater in spite of the Centre imposing lockdown to deal with the unfold of novel Coronavirus (Covid-19) pandemic.

On Monday, 1,400 tractor loads of onions arrived in Lasalgaon from arrivals of two,two hundred during the peak harvest interval. More than two,000 tonnes of onion adjusted hands from in excess of two,500 tonnes during the standard interval.

“Markets ended up shut for March-stop and Holi. We have opened from April 1 and farmers are coming in gradually,” mentioned Lasalgaon Agricultural Produce Marketing and advertising Committee Secretary Narendra Savaliram Wadhavane.

In retail shops, onions are priced at ₹25 a kg in Mumbai and Delhi, in accordance to the Buyer Affairs Ministry details. “Usually, rabi onion is staying saved in excess of the last couple of years by growers, traders, exporters and, even, govt. Rabi onion can be saved for six-seven months,” mentioned Ajith Seth, President, Horticulture Produce Exporters Affiliation (HPEA). “Normally, the crop that arrives during April-Might is retained in the warehouses. In the course of that time, a very good quantity arrives in the marketplace facilitating storage. At present, Rabi onions have started arriving but their top quality is not very good,” mentioned Vikas Chaudhary, a Nashik-based exporter. Describing the change in the predicament this year when compared to the preceding a person, Prakash mentioned earlier storage areas would be available even in late April or early Might during peak arrivals.

“Even those people who have an ordinary style of storage room have reported that the areas have been booked beforehand this year. Growers started to search for warehouses a minimal early this year,” the ACEA president mentioned.

Farmers are opting to shop their develop this year, anticipating to get greater costs during the non-peak or lean arrival season starting June. Selling prices are likely to continue to be agency at minimum until eventually September when early Kharif onion crop commences arriving in the marketplace.

“Many warehouses have appear up in the last couple of years to help farmers by storing onion,” Prakash mentioned. This is equivalent to what potato farmers do – shop the develop and wait for costs to improve.

The lease for these warehouses, named Chaali, differs from a person place to a further and also is dependent on the amenities that are produced available. Seth mentioned the ordinary price could work out to ₹50,000 for 50 tonnes and it is a a person-time agreement that could lengthen up to the time the grower or trader usually takes out the develop.

Cold storages are also available, even though they are a pricey affair. Similarly, large warehouses are available at much less expensive charges.

“Storage capability of these warehouses vary. Farmers even book areas in accordance to their wants. Within a person warehouse, areas can be rented out in different ways,” mentioned Nashik-based trader Sushant Musale.

The best selection for growers will be to decide for a chaali that can guarantee airflow from all sides, including from the base as it will offer onions with a larger sized shelf existence.

Slack export need

However costs have dropped, exports need has not picked up as expected.

“Export need has not picked up in destinations these kinds of as Malaysia thanks to constraints imposed by Kuala Lumpur to consist of Covid-19. Traders are not certain of need selecting up,” mentioned ACEA’s Prakash.

“Export need is gradual due to the fact our potential buyers are still obtaining their aged orders from countries these kinds of as Pakistan. We can be expecting need right after a pair of months,” mentioned HPEA’s Seth.

Till February-stop last fiscal, onion exports totalled thirteen.ninety four lakh tonnes (lt) from eleven.49 lt the total of 2019-20 fiscal. This is in spite of onion exports staying banned from September third week to December 31 as the Centre resorted to a variety of measures to rein in surging onion costs.

Onion costs surged to in excess of ₹100 a kg in retail shops prior to the Union Government’s measures, including allowing for duty-cost-free imports and imposing a cap on stock holdings, paid out dividends.

Past year’s superior costs have also aided greater manufacturing of onion during the latest crop year (July 2020-June 2021). In accordance to the Ministry of Agriculture, onion manufacturing this year is projected to be 26.29 million tonnes (mt) from 26.09 mt the preceding year with the spot under the bulb rising to virtually 1.six million hectares (mh) from 1.43 mh a year in the past.