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India: Small onion prices halvedThere is severe disappointment amongst growers of small onions in Tamil Nadu as prices slide steeply. The drop in prices is attributed to an increase in area under cultivation and, thus, production, putting a surplus of produce on the market.
This time last year the price of small onion was around Rs 20 per kg, or 37 cents US. Currently the price is running between Rs 7 and Rs 11 per kg.
"Good crop productivity coupled with a 30 per cent increase in the area under small onion has resulted in a sharp decline in the price levels," say agricultural sources.
However, the experts are warning farmers against placing the produce nto storage in a bid to remove it from the markets and manipulate prices.They are citing the cost of storage and the losses it will lead to, as reason against this.
Andhra Pradesh, Karnataka and Tamil Nadu are the three major small onion producing States in the country. The price of the produce is benchmarked based on the arrivals from Karnataka
According to National Horticultural Research and Development Foundation, the area and production of onion in Tamil Nadu in 2010-2011 were 33,800 ha and 3,38,900 tonnes respectively, wherein over 70 per cent of the area is under small onion.
Publication date: 5/2/2012
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