India is expected to face a major shortage in until the next kharif crop is harvested, said industry representatives. This marks a shift from the current situation, where the country is experiencing a surplus of the bulb vegetable and steady prices due to an export ban.
The industry representatives warned of a 30% drop in rabi harvest, potentially leading to a spike in onion prices around Ramadan in early March.
In a letter the Union government, a group of prominent onion exporters has issued a warning regarding the repercussions of permitting onion exports without implementing an effective mechanism to regulate export quantities. These exporters, following a meeting with government officials on Monday, asserted that exporting an estimated 300,000 tonnes of onions would lead to prices skyrocketing to Rs 35-40/kg in Nashik district markets and reaching Rs 50-60/kg in various retail markets.
“We expect the onion prices and demand to increase considerably from the beginning of March due to increased demand of the Ramadan festival on one side and reduced arrivals of kharif crop and some gap in the rabi arrivals,” stated the exporters. They further elaborated, This year the rabi crop is considerably lower in Maharashtra as well as Madhya Pradesh.
The kharif crop is in the last stage and arrivals will reduce in the next 15 days. The rabi crop, expected to arrive to the markets after mid-March, is not in excess and is likely to be less than last year.”