Onion production drops by 20 percent in FY 2023-24

The Union Agriculture Ministry has reported a significant decline in onion production across the country. According to the latest data, onion production dropped by 19.84 percent in the financial year 2023-24, amounting to 242.12 lakh tonnes, down from 302.08 lakh tonnes in 2022-23. This marks a continuous decline over the past two years, with production falling by 23.59 percent since 2021-22 when it was 316.87 lakh tonnes.

The decrease in production has been notably severe in key onion-producing states. Maharashtra, the largest producer, experienced a 28 percent decline, producing only 86.02 lakh tonnes in 2023-24 compared to 120.33 lakh tonnes in the previous year. Karnataka saw a dramatic 38 percent reduction, with production falling from 26.65 lakh tonnes in 2022-23 to 16.38 lakh tonnes in 2023-24. Similarly, Madhya Pradesh reported a 20 percent decrease, with production down to 41.66 lakh tonnes from 52.62 lakh tonnes last year. Andhra Pradesh faced the steepest decline, with a 46 percent drop in production to 5.13 lakh tonnes from 9.56 lakh tonnes in 2022-23.

Other states also saw fluctuations in onion production. Bihar's output slightly increased to 13.88 lakh tonnes from 13.44 lakh tonnes, while Gujarat's production rose marginally to 20.57 lakh tonnes from 20.47 lakh tonnes. Rajasthan produced 16.31 lakh tonnes, up from 16.15 lakh tonnes, and West Bengal saw a minor decrease to 8.85 lakh tonnes from 8.92 lakh tonnes. Uttar Pradesh produced 5.77 lakh tonnes, an increase from 5.11 lakh tonnes last year.

Onion exports declined by 36 percent

The decline in production has impacted onion exports, which fell by 36.4 percent. In 2023-24, only 16.07 lakh tonnes were exported, down from 25.27 lakh tonnes in 2022-23. The largest export market was Bangladesh, receiving 7.24 lakh tonnes, followed by Sri Lanka (1.7 lakh tonnes), Malaysia (1.67 lakh tonnes), and the UAE (1.55 lakh tonnes).

2.60 lakh tonnes of onion exported till July 31

The Union Agriculture Ministry has reported that since lifting the export ban on onions on May 4, 2024, 2.60 lakh tones have been exported in the current financial year up to July 31, 2024. The government has also procured 4.68 lakh tonnes of onions, mainly from Maharashtra, through NCCF and NAFED for price stabilization. Onion farmers have received much higher prices this year compared to 2023. In Maharashtra, the average monthly Mandi model prices of onions between April and July 2024 ranged from Rs 1,230 to Rs 2,578 per quintal, compared to Rs 693 to Rs 1,205 per quintal for the same period last year. The average purchase price for buffer stock this year was Rs 2,833 per quintal, which is 64 percent higher than last year's price of Rs 1,724 per quintal.