Export Of Onion from India

Onion is the largest vegetable produced and consumed not only in India but also in the world. Although, it is classified as vegetable, it has special qualities, which add to taste and flavour to food and hence it is mainly used in India cuisine and culinary preparations. In addition to its use in cuisine, it is also relished in raw form with meals. Onion is consumed by all classes of people-poor and rich and hence assumes a place of essential item. Onion possess very good nutritive and medicinal values- the nutritive ingredients of onion are as follows (Quantities per 100 gm):

Onion has both glucose (reducing sugar) and sucrose (non-reducing sugar). The special quality of onion is its smell (flavour) on account of which it is commonly used in food and masala preparations. The pungent taste of onion is due to volatile oil Allyl Propyl Disulphide present in it.

There are hundreds of varieties of Onion grown in the world. According to colour, there are red, white and yellow types. Red and white varieties are grown in India. Although, onion is consumed in all the countries of the world, it is cultivated only in some countries. Hence it has export market and export value. Area under onion cultivation in the world is about 20 lakh hectares. India has the largest area of about 4 lakh ha. (20%) followed by China about 3 lakh ha. But the production is the highest in China (48 lakh MT) as against India (44 lakh MT) due to higher productivity in China (16 MT/ha than India 14 MT/ha). In India, of the four lakh hectares of area under onion, the maximum area of about 95,000 ha (about 24%) is in Maharashtra. Other important states are Karnataka, Orissa, U.P., Andhra Pradesh, Rajasthan, M.P., Tamil Nadu, Bihar and Gujarat.

Trends of Exports

Figures of domestic production exports and shares of exports for the last 10 years are given in Table 1. During the last 10 years, onion production has increased with some ups and down. Onion production is known for its fluctuations for some reasons, particularly in Maharashtra State, which is the largest producer. By and large, there is increase in production with annual growth rate of 3.59%. However exports have increased of faster rate with annual growth rate of 7.64%. The share of exports has also increased from about 7% in 1988-89 to about 14% in 1997-98. Onion is a pride item of agricultural exports earning valuable foreign exchange to the country. Of the total fresh vegetable exports 67% share is of onion. The value exports has increased from Rs. 162.56 crores in 1992-93 has to Rs. 295 crores in 1997-98. However there was some decline in exports to Rs. 176 crores in 1998-99 due to reduction in production in the previous year (1997-98).

Table 1

Share of exports in domestic production of Onion

* Production of onion was hampered due to heavy and untimely rains in Maharashtra in this year.

Direction of Trade

Onion is exported from India to in all 38 countries in varying quantities. Export to major countries is given in Table 2 along with quantities, value and unit value or price per kg. Fourteen countries shown in the table were seen as important importing countries. Maximum quantity (23.30%) was imported by U.A.E. followed by Malaysia (22.16%), Sri Lanka (16.06%), Bangladesh (11.76%) and Singapore (9.02%). These five countries together imported nearly 83% onions. Total quantity exported in the year 1998-99 was 215.69 thousand tonnes valued at Rs. 176.05 crores. Regarding unit value, the highest price was offered by Singapore (Rs. 11.35 per kg) and the lowest by Pakistan (Rs. 6.18 per kg). The overall average price received was Rs. 8.16 per kg. Most of the importing countries are Asian countries and hence prices offered are relatively low.

Varieties Exported

Onions of four sizes are exported

Big size - 4 to 6 cm. Diameter

Medium - 3 to 4 cm. Diameter

Small - 2 to 3 cm. Diameter

Podisu - 2.5 to 3.5 cm. Diameter

The varieties of different sizes exported are:

Big - Pusa Red, Agrifound Light Red, N-2-4-1 Agrifound Dark Red, N-53, Nasik Local, Bellary Red, etc.

Small – Agrifound Rose, Bangalore Rose, Podisa, Multore, Nattu etc.

Nearly 90-92% of onion exported is of big size.

Table 2

Exports of onion from India – Direction of trade (1998-99)