India's onion export season is picking up again, with Bangladesh back as a major buyer for Indian onions, says Jatin Kucha of Semina Agro Products, a fresh produce grower and exporter. "Roughly 200 trucks carrying over 6,000 tonnes of red and white onions are crossing the border each day, helping to ease the shortage there and steady prices. At the same time, Indian farmers are still dealing with the effects of heavy rain on their crops."
According to Kucha, the quality of onions available for premium export markets is very limited due to the rains. He explains that rain during the curing stage impacted a major portion of the crop. "Such onions cannot be stored for long and start rotting sooner than usual. Because of this, much of the stock now in the market has a shelf life of only about a month and needs to be sold quickly, either within India or abroad."
© Semina Agro ProductsKucha mentions farm rates for export-grade red onions are currently around USD $260 per MT, while white onions are much higher at about USD $617 per MT. "Compared to last December, average red onion prices are lower because the overall quality is weaker, although top-quality lots still achieve better returns. White onions, on the other hand, have become more expensive than last year as buyers compete for limited good-quality volumes."
Kucha predicts that both availability and quality would improve after mid-January, once the main crop from October sowing is fully cured and reaches the market in larger volumes. "After Makar Sankranti, India's kite festival, celebrated on 14th January, quality will be better, and availability will also increase, which should stabilize prices. The red onion market in particular is expected to move in a more stable price range, without the sharp swings seen recently in white onions."
© Semina Agro Products
Outside Bangladesh, India is also shipping onions to the UAE, Sri Lanka, Malaysia, Nepal, and Bhutan, with the UAE acting as a hub that re-exports to other markets. Kucha estimates that old pink onion stocks will last until January, by which time red onions from the new season will arrive in better condition. "Despite this season's weather issues, strong demand from neighboring countries and the distinct taste of Indian onions should keep India in a good position against other supplying origins," Kucha concludes.
For more information:
Jatin Kucha
Semina Agro Products
Tel: +91 7778 042129
Email: [email protected]
www.seminaagroproduct.com
