India’s expensive onion loses to Pakistan in global market


India’s onion exports have been hampered due to the late arrival of Kharif’s first harvests. The quality of current products and other competing countries are other issues facing onion exports from India.

“The Kharif onion crop that is coming in now is of poor quality.” “We expect the quality to improve within a week,” said Ajith Shah, President of the Association of Exporters of Horticultural Products (HPEA).

“The reason for the delay in Kharif’s harvest is the heavy rains in the south in October and November,” Ajith said. In addition, he said, “the arrival of pink onions from Kadapa to Andhra Pradesh has also been delayed due to the adverse effects of heavy rains”.

According to PK Gupta, co-director of the National Foundation for Horticultural Research and Development in Nashik, onions from Kharif have started to appear in the markets of Maharashtra. “There was a hail and rain storm three days ago in the growing areas. However, details of any crop damage are pending,” he said.

The export has been affected as the Indian onion is listed higher in the export market, Shah said. “Pakistani onion is listed at $ 300 per tonne (22,450) while Indian onion is listed at $ 500 (₹ 37,375). It’s a huge difference and it hurts shipping, ”he said.

“We are a major supplier of onions to Sri Lanka.” However, it is going through a currency crisis and its buyers owe our exporters money. As a result, our shippers stopped loading in Colombo ”, Shah explained.

Sri Lanka, which has reduced imports to tackle the crisis, suffers from currency problems due to the Easter 2019 bombings, the spread of the Covid pandemic and political decisions made by the Gotabaya administration Rajapaksa that did not bear fruit.

Exports were also affected when onion prices soared in the last week of November before falling again. On November 24, the modal price (the price at which most trade takes place) for red onion at the Lasalgaon market, Asia’s largest onion market, was 2,500 per quintal. On Tuesday, prices fell to $ 1,880. Rates were higher over the same period a year ago, at 2,400.