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CHAPTER -9

ONION
1. Introduction
Onion (Allium cepa L) is extremely important vegetable crop not only for internal consumption but also as highest foreign exchange earner among the fruits and vegetables. It occupies an area of 695.1 thousand ha, with production of 9,248.4 thousand tons. The export of onion during 2006-07 was 1378.3 thousand tons with a value of Rs 1163.0 crores. World scenario India is the 2nd largest producer of onion, in the world next only to China but the productivity of onion in India is very low i.e. 13.3 tons/ ha as compared to China and other countries like U.S.A, Egypt and Turkey. Table 9.1: Showing major onion producing countries of the world COUNTRY AREA ( 000ha) PRODUCTION (000tons) PRODUCTIVITY (tons/ha) 21.1 13.3 51.2 26.8 13.8 14.3 33.7 30.6 19.5 28.1 17.4 18.7 % SHARE OF WORLD PRODUCTION 30.2 14.7 5.3 3.3 2.8 2.8 2.7 2.1 1.8 1.8 32.6

China 901 19,040 India 695 9,248 USA 65 3,346 Turkey 77 2,070 Pakistan 128 1,765 Russian 123 1,759 Federation Iran, Islamic Rep 50 1,685 of Egypt 43 1,302 Brazil 58 1,138 Mexico 40 1,115 Others 1,179 20,500 World 3,359 62,968 Source: Indian Horticulture Database, 2006 Indian scenario

There is a sizeable increase in acreage and production of onion in India.In terms of area,there is an increase from 495.8 thousand ha in 2001-02 to 695.1 thousand ha in 2005-06, while in terms of production it has increased from 5,252.1 to 9,248.4 thousand tons. The details are given below in table 9.2.

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Table 9.2: Showing the area production and productivity of onion in India AREA PRODUCTION (000 ha) (000 tons) 2001-02 495.8 5,252.1 2002-03 424.7 4,209.5 2003-04 553.8 6,267.6 2004-05 613.8 7,760.6 2005-06 695.1 9,248.4 Source: Indian Horticulture Database, 2006 YEAR PRODUCTIVITY (tons/ha) 10.6 9.9 11.3 12.6 13.3

2. Major producing states with production of last three years


Maximum onion production takes place in Maharashtra (1878.8 thousand tons) state followed by Gujarat (1,876.6 thousand tons.), Bihar (1,011.7 thousand tons.), Karnataka (1,008.5 thousand tons), Andhra Pradesh (670.0 thousand tons) and Madhya Pradesh (639.8 thousand tons.). In Rajasthan, Haryana and Uttar Pradesh it is grown to some extent i.e.427.2, 317.7 and 283.1 thousand tons respectively. The details are given below in table 9.3. Table 9.3: Area, production and productivity of leading onion growing states in India STATE
2003-04

AREA (000ha)
2004-05 2005-06

PRODUCTION (000tons)
2003-04 2004-05 2005-06

PRODUCTIVITY (tons/ha)
2003-04 2004-05 2005-06

Maharashtra Gujarat Bihar Karnataka Andhra Pradesh Madhya Pradesh Rajasthan Haryana Uttar Pradesh Others Total

121.1 25.0 48.3 132.4 29.0 31.0 33.6 19.9 21.2 92.3 553.8

121.7 58.5 48.8 135.0 35.4 34.7 42.9 17.2 21.2 98.5 613.8

154.0 84.9 49.8 139.0 39.4 40.0 44.5 15.5 21.2 106.8 695.1

1,434.5 717.4 917.9 538.9 435.7 465.0 249.1 294.7 245.8 968.6 6,267.6

1,422.3 1,340.6 975.2 969.7 566.6 520.8 347.9 353.0 245.8 1,018.9 7,760.6

1,878.8 1,876.6 1,011.7 1,008.5 670.0 639.8 427.2 317.7 283.1 1135.0 9,248.4

11.8 28.7 19.0 4.1 15.0 15.0 7.4 14.8 11.6 9.0

11.7 22.9 20.0 7.2 16.0 15.0 8.1 20.5 11.6 10.0

12.2 22.1 20.3 7.3 17.0 16.0 9.6 20.5 13.3 10.0

Source: Indian Horticulture Database, 2006

3. Description of commercially grown varieties


Table 9.4: Shows the varietal characteristics of commercially grown onion varieties Variety Agrifound Dark Red Characteristics The crop is global round in shape, big in size and dark red in colour.T.S.S. is 1213 brix and storage quality is medium.

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Agrifound Light Red Agrifound Rose Agrifound Red Pusa Red

The crop is global round in shape, big in size and light red in colour.T.S.S. is 1314 brix and storage quality is good. The crop is flattish round in shape, 2.5-3.5 cm in size and scarlet red in colour.T.S.S. is 16-18 brix and storage quality is good. The crop is 5-6 bulblets clump in shape, 2-2.5 cm in size and brick red in colour.T.S.S. is 9-10 brix and storage quality is good. The crop is flattish round in shape and red in colour.Storage quality is very good.

4. Good Agricultural Practices (GAP)


Use of hybrid seeds Nutrient and water management Plant protection Weed management Better post harvest management

5. Harvesting season of crop in leading states


- Lean season - Peak season

STATES

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Maharashtra Gujarat Bihar Karnataka Andhra Pradesh Madhya Pradesh Rajasthan Haryana Uttar Pradesh Fig. - 20 *The above graph shows harvest pattern in leading onion growing states Source: Indian Horticulture Database, 2006

6. Arrival pattern in the market


The requirement of onion is almost constant throughout the year and availability of fresh onion is limited to 7 or 8 months and there is lean periods when prices shoot up because of poor storage conditions available in the country. The main availability seasons in different parts of country are given in table 9.5.There are three main seasons of onion production namely (i) Kharif crop (ii) late Kharif (iii) Rabi crop

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Table 9.5: Details of arrival pattern of onion in leading states S.No. 1 2. 3. States Maharashtra and Gujarat Tamil Nadu, Karnataka and Andhra Pradesh Rajasthan ,Bihar, Uttar Pradesh, Haryana,Punjab,West Bengal and Orissa Cropping season Kharif crop Late Kharif Rabi Early Kharif Kharif Rabi Kharif Rabi Availability October December January March April June August October November March April November December May - June

7(a) Concentrated pockets


The details of concentrated pockets of onion in different states are listed below in table 9.6 Table 9.6: Shows concentrated pockets of onion in onion growing states State Maharashtra Karnataka Andhra Pradesh Uttar Pradesh Tamil Nadu Gujarat Punjab Districts Nasik, Ahmednagar ,Pune, Sholapur Dharwad ,Chitradurg, Gadag, Haveri, Bagalkot, Davengere Kurnool, Medak, Rangareddy, Cuddapah, Mehboobnagar. Varanasi, Patan, Kanpur ,Lucknow, Allahabad, Faizabad Coimbatore, Perambadur, Namakkal ,Dindigul Anna, Thirichirapalli, Periyar Bhavnagar, Surendranagar Ropar and Ludhiana

7.(b) Catchment areas of market


Table: 9.7: Showing the details of catchment areas of market of onion in leading states States Maharashtra Districts (Market) Nasik Ahmednagar Pune
Sholapur

Karnataka

Dharwar Bagalkot

Blocks Kalvan,Peint,Igatpuri,Sinnar,Niphad,Yeola,Nandgaon,Sat ara,Furgana,Dindori,Melgaon, Srirampur,Sangamner,Akola,Rahuri,Nevasa,Parner,Pathar di,Srigonda,Karjat Junnar,Ambegaon,Ghod,Rajgurunagar,Wadgaonsirur,Mul shi,Welhe,Purandhar,Bhor,Baramati,Indapur,Daund,Sasw Karmala,Barsi,Madha,Mohol,Mangalwedha,Singole,Mals iras,Pandharpur,Akalkot Hubbali,Kundgol,Navalgund,Yadvad,Kalghatgi,Kargod, Kamdali. Jamkhandi,Mudhol,Hungund,Badami.

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Devengere

Andhra Pradesh

Kurnool Mehboobnagar Rangareddy

Uttar Pradesh Varanasi


Kanpur Lucknow

Tamil Nadu

Coimbatore Thiruchirapalli

Gujarat Punjab

Bhavnagar Ludhiana

Harpana,Lalli,Harihar,Vasana,Honnali,Channagiri,Nyama ti,Matti. Emmiganuru, Kappagalu, Alur, Adoni, Atmakpur, Pattikonda, Dhone, Koilkuntla, Banganpalli, Allagadda Kollur,Keshampat,Mughalgidda,Karnul,Wanparti,Atmak ur,Gadwall,Alampur,Kolhapur,Achampet,Kondangol Marpali,Vikarabad,Tandur,Pargi,Ibranimpatan,Shahabad, Doma,Maisaram,Miryan,Nancherla. Sindhora, Babatpur, Phulpur, Cholapur, Mirzaurad, S h Bithur,Maharajpur,Narwal,Sarsaul,Bindhnu,Bhimser Mal, Rahimabad, Bhauli, Itaunja, Mahoma, Nagram, Nigohan, Sisendi, Bijnaur, Utrahthia, Gosainganj, Jugganar, Chanhat, Bani, Alamnagar, Kakori, Bhauli Muttuppalaiyam,Avinashi,Tiruppur,Palladam,Udumallaip pettai,Pollachi,Valparai. Manachanallur,Musili,Thothiyam,Lalgudi,Turayur,Manap prai,Srirangam Botad,Valbhipur,Umrala,Gadhda,Gariadhar,Palitana,Man dir,Ningara Raikot,Samrata,Khannakhamanoi,Paayal,Nurpur,Bhundri

8. Criteria and description of grades


According to AGMARK standards onions are classified into following classes: Table 9.8: Showing AGMARK standards and grade designation of onions Grade designation 1 Extra class Grade requirements Provision concerning sizing 3 As per table A Grade tolerances 4 5% by number or weight of onion not satisfying the requirements of the grade, but meeting those of class I grade or, exceptionally, coming within the tolerances of

2 Onion shall be of superior quality. They shall be characteristic of the variety and/or commercial type. The bulbs shall be: - firm and compact; - unsprouted (free from externally visible shoots); - properly cleaned; - free from swelling caused by abnormal development; - free of root tufts, however, onions harvested before complete maturity, root tufts are allowed. They shall be free of defects, with the exception of very slight superficial blemishes, provided 97

these do not affect the general appearance of the produce, the quality, the keeping quality and presentation in the package. Class I Onion shall be of good quality. They shall be characteristics of the variety and/or commercial type. The bulbs shall be: - firm and compact; - unsprouted(free from externally visible shoots); - properly cleaned; - free from swelling caused by abnormal development; - free of root tufts, however, onions harvested before complete maturity, root tufts are allowed. The following slight defects, however, may be allowed, provided these do not affect the general appearance of the produce, the quality, the keeping quality and presentation in the package. - a slight defect in shape. - a slight defect in colouring; - light staining which does not affect the last dried skin protecting the flesh, provided it does not cover more than one-fifth of the bulbs surface. - Superficial cracks in and absence of part of the outer skins, provided the flesh is protected. Class II Onions which do not qualify for inclusion in higher grade but satisfy the minimum requirements. They shall be reasonably firm. The following defects, however, may be allowed, provided the onion retain their essential characteristics as regard the quality, the keeping quality and presentation. - defects in shape; - defects in colouring; - early signs of shoot growth visible from outside(not more than 10% by number or weight per unit of presentation); - traces of rubbing; - slight marking caused by parasites or disease; - small healed cracks; - slight bruising, healed, unlikely to impair 98 -do-do-

that grade.

10% by number or weight of onion not satisfying the requirements of the grade, but meeting those of class II grade or, exceptionally, coming within the tolerances of that grade.

10% by number or weight of onion not satisfying the requirements of the grade but meeting the minimum requirements.

keeping qualities; - root tufts; - stains which do not affect the last dried skin protecting the flesh provided they do not cover more than half the bulbs surface; - Cracks in the outer skins and the absence of a part of the outer skins from not more than onethird of the bulbs surface, provided the flesh is not damaged. PROVISION CONCERNING SIZE Size is determined by the maximum diameter of the equatorial section, in accordance with the following table: Table 9.9: Provision concerning size Size code A B C Diameter (in mm.) 10-20 21-40 41-70 Difference between the diameter of the smallest and the largest onion in the same package (in mm.) 5 15 20

9. Packaging and its details


(a) For exports Packing size wholly depends on the importing country requirement. Some of the netted poly bag sizes have been given below for different countries. Generally there are 60 fills per 10kg bag of onion. Table 9.10: Showing the packing specifications of some countries S.No 1 2 3 4 5 Importing nation Malaysia and Indonesia Srilanka Singapore Philippines Gulf countries Pack size 10 kg 25 Kg 8 Kg 20 Kg 5 Kg, 10 Kg, 15 Kg and 20 Kg

Source: NIAM, Jaipur

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Table 9.11: Size of Onion required by different countries S.No. 1 2 3 4 5 6 Country Size(mm)

Middle East and Gulf(Dubai, Sharjah, Doha, Muscat, 40 60 Bahrain, Dammam, Saudi Arabia, Kuwait) Malaysia, Singapore, Port Kelang & African Ports Sri Lanka Bangladesh, Pakistan & Nepal Europe Japan 25 30 25 30 25 30 60 70 60 70

Source: MSAMB, Pune (b) For domestic markets For domestic markets, onions are packed in gunny bags.

10. Distribution of produce from primary to terminal market


Onion produced in Maharashtra and Gujarat finds major markets in Bhopal, Jaipur, Lucknow and Delhi from where it is distributed in Northern states like HP, Uttarakhand, J& K , Punjab and Haryana. Onion produced in Southern states (like Karnataka and Andhra Pradesh) are consumed in Southern states and nearby markets.

11. Price graph of onion in metros


Price graph of onion in metros
800 700 600 500 400 300 200 100 0
C h en n a i B a n g a lo re K o lk a ta M u m b a i D e lh i

January February March April May June July August September October

Pic ( s t r eR./Q l.)

Cities

Fig. 21 *The above graph showing the price ( in Rs./Qtl.) of onion in major cities 100

12. Exports and export potential


A. Domestic strengths for exporting onion Domestic strengths for exporting onion are detailed below: India is next to China in onion production. Production of onion is almost throughout the year barring one or two months. Wide varieties of onions are cultivated in the country. More than 45% of total onion production takes place in Maharashtra, Gujarat and Madhya Pradesh states which is very conducive for exports Three Agri Export Zones have been established in Maharashtra, Karnataka and Madhya Pradesh states. Export facility centre along with modern packhouse has been set up to facilitate export of onions at Indpur near Pune. An irradiation unit has been established at Lasalgaon (Nasik) to inhibit sprouting in onions. Onion growers have been trained on scientific farming of onion in Maharashtra and in Karnataka (rose onion growers). In Maharashtra state, MSAMB has disbursed subsidy to farmers for developing onion storage structures for prolonged shelf life There is a good research support, as NRC for Onion and National Horticulture Research and Development Foundation are located in Maharashtra itself. B. Exports Export of onions from India has increased at a fast rate in last five years. Export has increased from 5, 88,711 tons in 2002-03 to 13, 78,373 tons in 2006-07. An increase of 133% in exports has been recorded (Table 9.12 & Fig. 22 ) Table 9.12: Export of onion in last five years Year Quantity(tons) 2002-2003 588711 2003-2004 859938 2004-2005 870216 2005-2006 960507 2006-2007 1378373 Source: APEDA Database, 2006-07 Value(in Rs. Lakh) 36180 71586 64411 70815 116330

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Export of onions in last five years


1400000 1200000 1000000 800000 600000 400000 200000 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 0

Quantity in tons

Years

Fig. - 22 C. Export potential Maximum exports of onions were to SAARC countries, followed by ASEAN and GCC countries. An account of export potential is given below in detail region wise: (i) ASEAN countries ASEAN countries imported 7, 83,035 tons during 2006 compared to 439,154 tons in 2003 and thus there is an increase of 78% in demand for onions in these years. Maximum imports of onions during 2006 was noticed from Malaysia (4,70,552 tons), followed by Indonesia (99,690 tons), Philippines (75,865 tons), Vietnam (48,411 tons), Singapore (43,887 tons) and Thailand (41,144 tons).Indian exports of onions during 2006-07 was also maximum to Malaysia (3,19,857 tons). Philippines imported 32,894 tons of onions from India, whereas Singapore imported 22,960 tons and Indonesia merely 1203 tons. The restricted export of onions to Indonesia and Philippines perhaps is because of high import duties on import of onions in their country. China is competing with India and is supplying onion at a cheaper rate under APTA to Indonesia and Thailand. Possibly with the implementation of Free Trade Agreements with Singapore and other countries, export of onions will further increase to ASEAN countries. Moreover, India is supplying onion at most competitive prices. It is expected that onion export may at least enhance to 500,000 to 600,000 tons in next 4-5 years time. (ii) GCC countries GCC countries imported 606,866 tons of onions during 2006.There was 134% increase in demand for onions over the year 2003. Major importers are UAE (254413 tons) and Saudi Arabia (233992 tons). Imports from other countries in GCC were nominal. About 50% of the demand for onions was met by India, as India exported 292919 tons of onions to GCC countries. Maximum export of onions was to UAE (235912 tons) followed by Bahrain (26154 tons). India has not been able to penetrate Saudi Arabian markets, as India 102

exported only 7690 tons, whereas Saudi Arabia imported up to 233992 tons of onions. India must meet the requirements of Saudi Arabia in near future so that a boost to onion exports can be given. India will have to compete with Egypt and supply onions at competitive prices. It is expected that in next 4-5 years, 500,000 to 600,000 tons of onions can be exported to GCC countries. (iii) European Union European Union imported onions up to 1,776,544 tons during 2006. Largest importers were UK (316723 tons), Germany (276587 tons), Belgium (152427 tons), France (105659 tons) and Netherlands (103357 tons). Onions from India have just started penetrating EU. During 2005-06, 7180 tons were imported by Greece and during 2006-07, 4540 tons of onions were exported to EU. During 2006-07 mainly onion was exported to Greece (1345 tons), Spain (1071 tons), Netherlands (666 tons), UK (598 tons), Germany (325 tons) and Italy (308 tons). The distribution of Indian onions to major countries in EU shows that acceptability of Indian onions is increasing. Further enhancement in exports of onions to EU is a great possibility if India supplies yellow onions with less pungency, along with thick and fleshy layers. A suitable variety Arad H has already been identified and export of this needs to be explored in concerted manner. D. Measures for enhancing competitiveness for exporting onion Following steps must be taken up on priority for enhancing competitiveness for exporting onions: Domestic production needs to be enhanced (by adoption of high yielding varieties and modern agricultural practices) with consistency, so that export of onions can be made on regular basis. Because, exporting on regular basis helps in increasing volumes and farmers also get remunerative prices. Contract farming needs to be adopted for export purposes. Expansion of area under onion in early kharif, kharif and late kharif needs to be taken up so that quality onions are available for export on regular basis. Farmers need to be supported (in addition to existing support) for developing storage facilities, for enhancing storage period. Ventilated storage godowns at shipyards need to be constructed for enhancing export of quality onions. For enhancing competitiveness for export, India must improve the quality of onions and also take up branding of the product.

13. Storage
Temperature Relative Humidity Storage period : : : Fresh 0o C 65-70% 3-5 months

sensitivity to low temperature. 103

14. Documents required for exports


a) Documents related to goods a) Invoice a) Mate Receipt b) Packing List b) Shipping Bill c) Certificate of origin c) Bill of handing b) Bill of Exchange b) GLOBALGAP Certification c) Health Certificate d) Airway Bill b) Documents related to shipment: c) Documents related to Payment a) Letter of Credit (L/C) a) Phytosanitary Certificate e) Organic Certification: - Certificate indicating material produce is based on organic farming. f) Documents related to Foreign Exchange Regulations GR Form: Documents required by RBI which assures to RBI that the exporter will realize the proceeds of goods within 180 days from the date of Shipment. g) Other Document Bank Realization Certification (BRC): This is the advice given by Foreign Exchange Bank after the realization of money from Importer. d) Documents related to quality of goods

15. Chain of events which happen up to shipment


Transported to Packhouse Unloading Sorting & Grading Packed in netted poly bag sizes Precooling Cold storage Palletizing Refrigerated trucks Shipment

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16. Price prevailing in international markets


The given below tables shows the annual average price range of onions in GCC and ASEAN markets. The table 9.13 shows the pricing trend in the markets of GCC and ASEAN countries Table 9.13: Summary of prices for onion in target markets for India Country GCC ASEAN Annual Average price Range Currency USD/kg INR/kg USD/kg INR/kg 0.15 to 0.17 6.84 to 7.96 0.24 to 0.29 10.85 to 13.35 (2003-08)

Source: Comtrade Database

17. Cost Calculation from harvest to packhouse to port


Cost estimates for exports of onions from India (as per information collected during 2008) (a) Procurement price*: Approx. price (Rs. /kg) : 3.0

*Price of onion varies according to variety, month of procurement (b) Charges for treatment, packing, transport, etc.(below in table): Table 9.14: Charges for treatment, packing, transport, etc. Particulars Nylon Bag (Capacity: 20Kg) Rs. 8/- per bag Cost of loading & unloading Cost of pallets Local transportation Container Transportation(JNPT - Vashi - JNPT) Terminal Handling Charges Total Source: MSAMB, Maharashtra 40 container (25000 kg) 8100 5000 2500 17000 7000 14885 54485 or Rs. 2.17/kg

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(c) Sea freight charges*: Freight rates for reefer container are as follows: Reefer containers (Rates in US dollars) 20 40 (i) Dubai/Doha 1100 1600 (ii) Kuala Lampur/Singapore 600 900 (iii)UK/Amsterdam 1700 2700 Freight rates for ordinary container are as follows: Ordinary containers (Rates in US dollars) 20 40 (i) Dubai/Doha 600 900 (ii) Kuala Lampur/Singapore 100 175 (iii)Flaxo (UK)/Amsterdam 900 1450 * It varies from year to year /season to season, capacity of container and distance covered.

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