Higher output of Kharif crops to end onion prices from December

PUNE: Onion prices, which have set new records this year, may come crashing from December onward. Kharif and late kharif crops are expected to yield a big harvest with farmers increasing the acreage by about 15-20 per cent.

When prices started appreciating from July, farmers increased the acreage significantly. “Area under kharif and late kharif onion is likely to increase by 15-20 per cent. But prices may come down significantly in December and January,” said RP Gupta, director, National Horticulture Research and Development Foundation.

Ajit Shah, president, Onion Exporters Association, said, “Production of the kharif and the late kharif crops is much higher than the previous year.”

The kharif onion is harvested from October while the late kharif crop comes to market from December to February. If production goes up, prices will crash because the crops have no shelf life.

Even though most of the rabi crop is stored by farmers, the downtrend in onion prices may continue till March-April when the rabi crop is harvested. Onion seed sales also confirm the expected increase in acreage.

A majority of onion farmers saves seeds from their own produce for the next crop. Bejo Sheetal, the seed company that dominates the hybrid onion seed market in the country, felt a shortage of about 20-25 per cent. “We could not meet the demand in Maharashtra. We are likely to fall short of seed supply in Tamil Nadu, Uttar Pradesh and Rajasthan, where sowing will take place in the next few months,” said Sameer Agarwal, managing director, Bejo Sheetal.

The company’s sales grew by 30-40 per cent over 2011-12. Sales had dropped last year by about 25 per cent due to drought in key onion growing states. Though tomato price fluctuations are not as high as that in onion, farmers have increased area under tomatoes too.

“Tomato prices this year are almost double than the previous year. Tomato area will go up in Sonipat, Panipat and Karnal,” said Kawal Singh, head of the Haryana chapter of Vegetable Growers' Association of India. “Tomato area will be slightly higher this year. Tomato prices are higher now. But fields are not vacant and alternative crops like cauliflower, okra and beans are available to farmers. These vegetables are harvested in shorter periods and have good rates,” said the head of vegetable seeds division of an MNC.