Onions from India have gained fame worldwide for their pungency and good quality. In the last five years, however, erratic weather and shifting policies on export have left the country behind others. Countries such as China and Pakistan are fast catching up with India both in terms of quality and increase in cultivation.
India ranked second among the top 10 onion exporting countries for several years. However, this position has taken a hit. According to officials from APMC, Nashik, India now ranks fourth in onion export in the world. Earlier China ranked first followed by India. Now China ranks first and countries such as the Netherlands, Mexico, Spain and Pakistan have joined the race.
Moreover, region that India has been traditionally exporting to such as Southeast Asia has also begun to grow onion in addition to exporting the vegetable.
According to sources from National Horticultural Research and Development Foundation (NHRDF), India had topped in export in 2009-10 with 18 lakh tonne. Average export also hovered around 14 lakh tonne. However, in the last five years, onion export from the country has taken a downward turn. In 2014-15, only 10.86 lakh tonne of onions have been exported. The decline has been as much as 20% compared to the previous year.
According to RP Gupta, director, NHRDF, erratic monsoon and uncertainty in supply has resulted in exporters not being able to fulfill their export commitment. “Policies have been such that there is no certainty over export. For two years there has been a ban on onion export and sometimes the MEP is raised. Therefore buyers have begun tapping other sources,” Gupta explained.
One major effect, according to Gupta, is neighboring countries such as China and Pakistan have begun producing onions of the same quality and pungency and their onions are a lot more cheaper in the international markets.
Moreover, countries such as Thailand, Indonesia and Sri Lanka who were traditional buyers of the Indian onion have begun to produce onions and also export them. Since the competitiveness has increased, India has not been able to match up both in terms of quality and policies, observers said.
Onion is cultivated in Maharashtra, Gujarat, Madhya Pradesh, Karnataka, West Bengal, Odisha and Tamil Nadu with a total production of some 189 lakh tonnes for all the three seasons. Onion export however account for just 1% of the total production, according to market experts.
Top officials from Lasalgaon, the hub of wholesale onions in the country, say exporters from all over India used to export from Nashik. However, in 1999 the then prime minister Atal Behari Vajpayee first brought the onion under the essential commodities list and thereafter there have been several restrictions.
Source:- financialexpress.com
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