Ban on exports may bring down onion price in domestic market

Average price has gone up to ₹40 a kg as arrivals plummet

With the Centre imposing a ban on exports of onions following the shortage and sudden increase in prices in the domestic market, the prices are likely to come down, giving the much-needed relief to consumers.

The farmers, on other hand, are unlikely to be impacted immediately as the export varieties such as KP onion (rose onion) is expected to reach the markets in January next year.

According to information, KP onion, grown in 5,000 acres in YSR Kadapa and Prakasam districts, was exported to Bangladesh last but one year ago.

The farmers take up this variety in November- December.

The crop is harvested from January onwards. So, the farmers are unlikely to be impacted unless the prohibitory orders imposed on the exports were in vogue in January- February next year, says an official who did not want to be quoted.

“But, the ban will bring down the prices as other varieties,which are usually exported from other States, will hit the domestic markets,” he says.

The average price of the onions has touched ₹40 per kg. A months ago, 6 kg onions were sold at ₹100. Prices at the markets in Niphad taluka of Nashik district in Maharashtra, which were in the range of ₹1,500 per quintal in March, have since appreciated to ₹3,000.

In Andhra Pradesh, the highest price is ₹ 3,400 per quintal, and the model price has touched ₹2,100 per quintal. The reason behind the spurt in the prices is fall in arrivals. Also, the prices at Lasalgaon, biggest supplier of onions in India, have appreciated significantly.

Heavy rains have damaged the crops. Hence, the ban on exports will improve the arrivals in the domestic market, sources say.

Different varieties

The farmers cultivate different varieties of onions in the State depending upon the season.

During the kharif, Bellary red, Puna red, Agrifound dark red varieties are cultivated. And, during the rabi, light red varieties such as Agrifound light red, Red -3, Prema (east west) and Red diamond (jindal) are grown. As much as 44,282 hectares is under onion cultivation in the State which produces 10,02,320 metric tonnes (MT) of onions.