PRESENTATION ON ROLE OF APMC IN MARKETING AND EXPORT OF ONION AND GARLIC

BYD.M.SABLEMSAMB PUNE

CURRENT SCENARIOIndia stands second after China in Onion Production. India exports onion after domestic consumption and earns foreign exchange. About 10 lakh hectare area under onion and its production is 160 lakh MT.Maharashtra state produced 47.63 lakh MT onion from 2.62 lakh ha area in the year 2012-13 which comes to 30 % of the total country production.

CURRENT SCENARIO

SEASONOnion is produced in three seasons in the State as belowKharif - 20 % of the production, harvesting in October- DecemberLate kharif - 30 of the production, harvesting in January - MarchRabi - 50 % of the production, harvesting in March - MayOnion produced in kharif and late kharif has no keeping quality hence farmers brings the production in the market immediately after harvest. While rabi onion can be kept in good condition for 5 to 6 months if stored in scientifically built onion storage structures. So rabi onion is stored in April and May and brought in market from June to October

ARRIVAL AND PRICES IN MAJOR ONION MARKETSArrival in qtl

ONION PRODUCTION AND ITS UTILIZATIONDomestic onion consumption is 107.31 lakh MT out of total production of 160 lakh MT. Remaining is utilized for processing, export, seed purpose and post harvest losses. Looking to the utilization pattern of onion it can be stated that there is balance between demand and supply There is no surplus production of onion in the country. But temporary situations emerges due to sudden increase in demand of onion, huge arrival in market immediately after harvest or less arrival as compared to demand. These leads to rise and falls in onion prices.

ONION PRODUCTION AND ITS UTILIZATION

PROBABLE REASONS FOR RISE AND FALL OF ONION PRICESFall in Onion PricesMaharashtra State approximate 16 lakhs MT onion is surplus. This surplus is marketed to other surrounding states like Karnataka, Tamil Nadu, Andhra Pradesh and also to other states. Onion production in these states is also continuously increasing hence the demand for the onion from the State is decreasing leading to fall in demand and fall in price. Also the perishability of onion itself is the main reason for selling out the produce immediately after harvest in kharif or late kharif season arrival in the market leading to glut in the market.

PROBABLE REASONS FOR RISE AND FALL OF ONION PRICESRise in Onion PricesThe rise in onion prices are mostly occurs during August to October. State stores almost 50 % onion of the total stored onion in the State and markets in the country mostly depends on this stored onion from the State. This period is also combined with rainfall or non working days of markets. It results problems for farmers to bring produce in the market. It results into imbalance between demand and supply of onion.

ONION EXPORT - CURRENT SITUATION Onion share in the total fruits and vegetables export is 20.5 % from country. India's onion export is 12 % of the total global export of onion. Foreign exchange earning from Onion export share is 70 % in the total foreign exchange earning from Fruits and vegetables. Recently India received Rs 2000 Cr foreign exchange due to export of onion.

PROBLEMS AND SOLUTIONS FOR ONION EXPORT, STORAGE, PROCESSING, Implementation of Contract Farming for export and Processing of Onion. Will help to produce onion at required time and quality. Exporter and processor will provide quality seed material, proper technology and inputs and take assurance of sale price. Such efforts are initiated from Jain Irrigation for production of white onion for processing in Maharashtra Sanghar Export has initiated in Gujarat for export of white onion for European countries. Such initiative involvement of multi national companies should be increased.

(contd) Erection of Onion Storage Structure to reduce post harvest losses.The post harvest losses in the onion - 10 to 15 % ( 8 to 9 lakh MT) due to unscientific handling, storage, transportation, packing of onion. It can be helpful to reduce this post harvest post harvest losses to the extent of 50 % and it will result into availability of 4 to 5 lakh MT onion in the market. The total onion storage capacity is 15 lakh MT. Out of this 10 lakh MT is scientific storage capacity while traditional onion storage structure will come to 5 lakh MT and there is scope for converting these traditional structures into scientific onion storage structure.

(contd)

(contd)Onion Dehydration Projects Dehydrated products from white onion especially from Vidarbha region has large potential. About 80 to 90 Onion dehydration projects have been running in Bhavanagar area of Gujarat. Jain irrigation also running dehydration project in Jalgaon. To promote onion dehydration projects in the State the availability of white onion varieties should be increased it will help to control the fall in onion price due to arrival of onion after the harvest. Hence efforts to be taken for private sector participation in establishment of dehydration projects.

(contd)Use of irradiation technology for onion storageSprouting of onion is also one of the major reason of post harvest losses of the onion. It reduces the quality of onion. Use of irradiation technology for inhibiting sprouting of the onion.The radiation cost of the onion will come to Rs 1 to 1.20 per kg.But as there is no compulsion of irradiation for onion export the exporters are not interested to use this facility. But for better keeping quality to export it to European countries use of this technique should be promoted.

(contd)MEP for Onion ExportMEP is declared by NAFED. Exporter has to export at MEP of higher than MEP. While deciding MEP various factors are considered viz - Local prices, Production and arrival, export expenditure, freight etc. Also there is constant demand from onion producers and exporters to remove the MEP. Hence MEP mechanism should be utilized to control the retails price. Also on off policy of GoI of export affects the trade of onion. .

INFRASTRUCTURE CREATED BY MSAMB MSAMB has created two onion export facility centresKalwan Dist NashikChandwad Dist NashikComponentsPre-cooling 5 MT/ 6 hrCold Storage 50 MTMaterial Handling Line - 1.5 MT/Hr.Onion Storage - 500 MT

Export Facility Centre Kalwan

Export Facility Centre Chandwad(Under Construction)