Export volume, however, dropped 26 per cent to 1.35 million tonnes in the year ended March 31 from 1.82 million tonnes the year before, according to data from the Nashik-based National Horticultural Research and Development Foundation (NHRDF). The previous record for onion exports was Rs 2,834 crore in 2009/10 when the country shipped 1.87 million tonnes.
The average value realised in the export market rose to Rs 21,183 per tonne in 2013/14 from Rs 12,590 a tonne in 2012/13. This helped boost the value of exports.
A monthly analysis of the data shows that the first quarter of the financial year (April to June 2013) accounted for 40 per cent of exports. However, as domestic prices started firming up, the government discouraged exports and shipments declined August onwards. The government increased the minimum export price of the bulb from $650 a tonne in September 2013 to $1,150 a tonne in November. The country also imported onions in small quantities to boost availability.
As domestic availability improved and prices came down after the harvest of the rabi crop, the government started relaxing export prices and finally removed the cap in early March. But this has not helped exports. In March, exports were 100,000 tonnes, down sharply from February's 150,000 tonnes.
R.P. Gupta, Director at NHRDF, says demand for onions in the international market is weak.
"The onion crop has been affected due to unseasonal rains. These are not fit for exports as there is a large time lag between export and actual consumption," he says. In a way, it is good news for domestic consumers. Onion is now available for Rs 25 to Rs 30 per kg. India produces about 16 million tonnes onion annually but consumes only 10-11 million tonnes.
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