Dip in exports pushes onion costs down

Higher freight fees and newer certification norms have slowed down onion exports, which has seen common traded worth of the bulb fall in wholesale markets in Maharashtra. With rabi and late Kharif onions arriving on the similar time, most wholesale markets have reported arrivals of round 20,000-25,000 quintals of onions per day.
Indian onions have some established markets, particularly in Middle Eastern international locations, Indonesia, Sri Lanka and the United Kingdom, amongst others. Exports occur around the yr, however the rabi crop — sown in December- January and harvested post-March — includes majority of the export basked resulting from decrease moisture content material and longer shelf lifetime of the bulb.
But this yr, exporters worry that possibilities of the bulb being exported are slim.
Suresh Deshmukh, a fee agent working out of Dindori wholesale market in Nashik district, cited elevated certification wants for conventional markets like Indonesia and United Kingdom as roadblocks for exports to these international locations. “Starting this fiscal, these countries have mandated Global Good Agricultural Practices certification for export consignments. This was not necessary for onions and few farms would be eligible for this,” he stated.
GAP certificates is given to farms which adhere to sure agricultural practices prescribed by auditing companies. This contains adhering to a sure schedule for the utilization of fertilisers and different inputs, and the certificates is granted after an audit. Vegetable and horticulture crops have necessary certifications, which has prompted farmers to undertake these agricultural practices. According to Deshmukh and different exporters, onion farmers normally don’t adhere to those practices and thus possibilities of them getting the certificates are slim.

An uncommon enhance in freight fees and unavailability of containers have additionally stopped the circulate of exports from the nation. Deshmukh identified how freight fees, which had been round Rs 3 per kg a yr in the past, has since then elevated to Rs 6 per kg this yr. Due to the worldwide disruption in cargo actions, containers are additionally laborious to get, which has put brakes on exports.
Consequently, wholesale charges of onions in most markets in Nashik district have slumped at the same time as farmers proceed to reap and produce their rabi and late Kharif produce. At Lasalagon’s wholesale market in Niphad taluka, the typical traded worth of the bulb is now between Rs 775-800 per quintal. Back in February, the value was round Rs 3,358 per quintal.
Suvarna Jagtap, chairman of Lasalgaon’s wholesale market, acknowledged that the current scenario was resulting from lack of exports. ‘If exports choose up, then costs can enhance loads,” she stated.