Commodity Profile on

Onion

Prepared by

Raka Saxena and Rohit Kumar

And

Consultancy Project Co-ordinated: Dr Shiv Kumar

ICAR-National Institute of Agricultural Economics and Policy Research

New Delhi

1
2
 Format of Report

Contents Page No.

Cover page 1
Content page 2-3
1.0 Introduction 4
1.1 Origin of Onion 4
1.2 Importance 4
2.0 Production Scenario 5-8
2.1 Major Producing Countries in the World 5
2.2 Area and Production of Onion in India 5
2.3 Major producing states in India 6
2.4 Major commercial varieties 7
2.5 National and International Price Trends 7
3.0 Post-harvest Management 9-15
3.1 Post-Harvest Losses 9
3.2 Harvesting Care 9
3.3 Grading 9
3.4 Grade Specification (AGMARK Standards and Grade
10
Designation Of Onions)
3.5 Grading (APEDA Provision Concerning Size) 11
3.6 Packaging 11
3.7 Transport 11
3.8 Storage 12
3.9 Major Storage Pest and Their Control 12
3.10 Storage Structures 13
3.11 Storage Facilities 15
4.0 Marketing Practices and Constraints 16-24
4.1 Trends on prices and arrivals 16
4.2 Distribution of produce from primary to terminal market 16
4.3 Export 17
4.4 Sanitary and Phyto-Sanitary requirements 23
4.5 Export Procedure 23
5.0 Marketing Channels, Costs and Margins 25-27

3
 5.1 Marketing Channels 25
5.2 Marketing Costs and Margins 27
6.0 Marketing Information and Extension 28-39
6.1 Price Transmission across Markets 28
6.2 Price Movements in Onion Prices 28
6.3 Co-integration and Causality in Onion Prices 30
6.4 Price Transmission between Lasalgaon and other Markets 34
6.5 Production-Price Linkages in Maharashtra 35
7.0 Alternative Systems of Marketing 40-44
7.1 Marketing Reforms Undertaken by the States 40
7.2 Reform-Induced Developments: E-Markets 41
7.3 Availability of Marketing Infrastructure 42
8.0 Institutional Facilities 45
8.1 Operation Green 45
8.2 Institutional Credit Facilities 45
9.0 Processing and Utilization 46-48
9.1 Processing of Onion 46
9.2 Dehydrated Onions 47
9.3 Preparation of Onion Vadagam 48
9.4 Preparation of Onion Pickle 48
10.0 References 49
Appendices 50

4
 1. INTRODUCTION

1.1 Origin
The Onion (Allium cepa) which is also called a bulb onion, common onion and garden onion
is the most widely cultivated species of the genus Allium. Many archaeologists, botanists, and
food historians believe onions originated in central Asia. Other research suggests onions were
first grown in Iran and West Pakistan.

It is presumed our predecessors discovered and started eating wild onions very early – long
before farming or even writing was invented. Very likely, this humble vegetable was a staple
in the prehistoric diet.

Most researchers agree the onion has been cultivated for 5000 years or more. Since onions
grew wild in various regions, they were probably consumed for thousands of years and
domesticated simultaneously all over the world. Onions may be one of the earliest cultivated
crops because they were less perishable than other foods of the time, were transportable,
were easy to grow, and could be grown in a variety of soils and climates. In addition, the
onion was useful for sustaining human life. Onions prevented thirst and could be dried and
preserved for later consumption when food might be scarce. While the place and time of the
onion’s origin is still a mystery, many documents from very early times describe its
importance as a food and its use in art, medicine, and mummification.

1.2 Importance

This is evident from the growth experienced in the horticultural and livestock products in the
recent years. Among various high value products, onion has emerged among the fastest
growing crops in recent years. Onion is a vegetable that is the most extensively cultivated
species of the genus Allium. It also contains many other varieties. Onions are cultivated and
used for cooking purposes throughout the world. They are usually served cooked, as a
vegetable or as a part of a prepared pungent dish, but in several cases it can also be eaten raw.
Historically onions have been described by different researchers to have been originated in
Iran, western Indian subcontinent and Central Asia (Source: Alium Cepa)

Onion (Allium cepa L.) is an important vegetable traditionally used as a food ingredient in the
Mediterranean diet that has a high production, domestic, and foreign trade worldwide. It is
consumed raw, cooked or processed into different onion products in the daily diet. Onion
added into different foods makes these products rich in bioactive compounds with potential
beneficial health effects. Among them, its effect on cardiovascular disease, including
hypocholesterolemic, hypolipidemic, anti-hypertensive, antithrombotic, and hypoglycaemic
activities, is one of the most extensively studied benefits. Onion consumption has also been
reported to have antiproliferative effects in many cancer cell lines, to be involved in the bone
metabolism and in the behaviour as a possible antidepressant agent, and to stimulate the
growth of specific microorganisms in the colon (Bifidobacteria and Lactobacilli) with a
general positive health effect.

5
 2. PRODUCTION

1.2 Major Producing Countries in the World

China is the largest onion producer followed by India and grew 24.34 million tonnes of
onions during 2017 (Table 1).

Table 1: Major Onion producing countries in the world

Country Area Production
2018 2019 2020 2018 2019 2020
India 1.29 1.22 1.43 23.26 22.82 26.74
China 1.09 1.08 1.08 23.60 23.68 23.66
USA 0.05 0.05 0.05 3.28 3.55 3.82
Egypt 0.09 0.09 0.09 3.07 3.08 3.16
Türkiye 0.06 0.07 0.07 1.93 2.20 2.28
Pakistan 0.15 0.15 0.15 2.12 2.08 2.12
Iran 0.04 0.05 0.05 1.52 1.81 2.06
Bangladesh 0.18 0.17 0.19 1.74 1.80 1.95
Sudan 0.10 0.10 0.11 1.72 1.92 1.95
Indonesia 0.16 0.16 0.19 1.50 1.58 1.82
World 5.15 5.15 5.48 96.88 99.52 104.55
Source: FAO statistical database

1.3 Area and Production

Onion production in India can be broadly categorised into two phases – a) phase I with low
growth and low volatility in onion production continued till 2002-03, b) phase II is
characterized by high growth and high volatility in production which started with a
turnaround in onion production after 2002-03 and continues till date.
The trends in area, production and productivity of onion since 1981-82 are presented in
Figure 1; the first phase from 1981-82 to 2001-02 witnessed gradual increase in production
driven largely by area expansion. In this period, area under onion cultivation doubled from
0.25 million hectares to 0.49 million hectares and production also doubled (refer to 2003-04).
However, the yield levels remained stagnant at 100 quintals per hectare (10 MT/Hectare).
After 2002-03, all three dimensions of production witnessed exponential growth. In ten years
following 2002-03, onion productivity increased by about 60 per cent which attracted area
shift in favour of onion. The increase in area turned out to be much higher (more than double)
in 10 years period. As a result, onion production tripled in less than 10 years since 2002-03.
Netting out for population growth, India’s onion production increased from 4.6
kg/person/year during biennium 2000-01 and 2001-02 to 15.2 kg/ person/year in years 2013-
14 and 2014-15.

6
Figure 1: Area, production and productivity of onion in India (1981-2017)
25000 20.0

Production (' 000 MT) Area (' 00 Hectare) Productivity (MT/Hectare)

18.0

20000 16.0

14.0

15000 12.0

10.0

10000 8.0

6.0

5000 4.0

2.0

0 0.0
1981-1982

1983-1984

1985-1986

2002-2003

2004-2005
1982-1983

1984-1985

1986-1987
1987-1988
1988-1989
1989-1990
1990-1991
1991-1992
1992-1993
1993-1994
1994-1995
1995-1996
1996-1997
1997-1998
1998-1999
1999-2000
2000-2001
2001-2002

2003-2004

2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
2017-2018
Source: NHRDF

2.3 Major Producing States in India

The major onion producing states in India are Maharashtra, Karnataka, Madhya Pradesh,
Gujarat, Bihar, Andhra Pradesh, Rajasthan, Haryana and Telangana. At national level, close
to 50-60 per cent of the onions are produced in rabi season and remaining 40-50 per cent are
produced in kharif and late kharif. Onions are usually grown in winter (rabi) season in the
northern part of the country, however, it is grown in both rabi and kharif seasons in the
southern and western states of India like Karnataka, Andhra Pradesh, Tamil Nadu,
Maharashtra and Gujarat. Onion area witnessed tremendous growth from TE 2006-07 to TE
2015-16 in Bihar, Madhya Pradesh and Maharashtra, which resulted in sharp increase in
onion production during the above period.

7
Map 1. Distribution of onion production across states (%) (TE 2015-16)

Note: Figures in parentheses indicate onion area share in the country.

2.4 Major Commercial Varieties

Major onion varieties include Agrifound Dark Red, Agrifound Light Red, NHRDF Red,
Agrifound White, Agrifound Rose and Agrifound Red, Pusa Ratnar, Pusa Red, Pusa White
Round. Other onion varieties suitable for export in European countries are Tana F1, Arad-H,
Suprex, Granex 55, HA 60 and Granex 429 (APEDA).

2.5 National and International Price Trends

The onion price behaviour at aggregate level can be depicted from the WPI (Wholesale Price
Index) published by the Office of Economic Advisor, Ministry of Industry, GoI. Figure 2

8
depicts the peak points in WPI during April, 2012 to November, 2019. However, higher price
inflation was observed during October, 2013 in domestic market.

Figure 2: Wholesale price index of onion (WPI at 2011-12 bases)

600

500

400

300

200

100

Dec-18
Dec-12

Dec-13

Dec-14

Dec-15

Dec-16

Dec-17
Apr-16

Apr-17
Apr-12
Aug-12

Apr-13
Aug-13

Apr-14

Apr-15

Apr-18

Apr-19
Aug-14

Aug-15

Aug-16

Aug-17

Aug-18

Aug-19
Source: Office of Economic Advisor

Figure 3 provides the unit value realized (UVR) from exports of onions to various
destinations. It can be observed that the UVR varied a lot during January-2011 to September-
2019. In international markets, onion was stable during January-2018 to August-2019,
however, increased drastically from 0.19$/Kg to 0.57$/Kg in September-2019. Higher price
rise was observed during 2013 in international (0.9$/Kg) and domestic market (530 WPI)
both.

Figure 3: Unit value realized from exports of Indian onion ($/Kg)

1.000
0.900
0.800
0.700
0.600
0.500
0.400
0.300
0.200
0.100
0.000
Apr-12

Apr-14
Apr-11

Apr-13

Apr-15

Apr-16

Apr-17

Apr-18

Apr-19
Jul-11

Jul-12

Jul-13

Jul-14

Jul-15

Jul-16

Jul-17

Jul-18

Jul-19
Jan-17

Jan-19
Jan-11

Jan-12

Jan-13

Jan-14

Jan-15

Jan-16

Jan-18
Oct-11

Oct-12

Oct-13

Oct-14

Oct-15

Oct-16

Oct-17

Oct-18

Source: comtrade.un.org

9
 3.POST HARVEST MANAGEMENT

3.1 Post-Harvest Losses

Central Institute of Post Harvest Engineering & Technology (CIPHET, Ludhiana) estimated
losses in onion based on data collected from six agro-climate zones across the country. The
total losses in onion varied from 5.49 per cent in Gujarat to 12.72 per cent in western plateau
and hill region (including the main onion production region of Maharashtra). There were
wide variations in onion losses across regions. The storage losses were mainly reported at
wholesale and retail levels.

3.2 Harvesting care

Curing is the major post-harvest operation, which is prerequisite for long storage of bulb
onions. It is a drying process for dehydration of necks and external scale leaves of the bulbs
to stop the loss of moisture. This may also prevent the attack by decay during storage. Curing
requires heat and good air circulation with low humidity. Onions can also be gathered in
platter, then stacked in a warm, covered area with decent ventilation. Onions can also be
treated through tying the tops of the bulbs in bunches and hanging them on a horizontal pole
in well-ventilated shades. Curing in shadow enhances the bulb colour and decreases losses
significantly during storage. (Source: National Horticulture Board)

3.3 Grading

Onions after processing are graded manually before they are stored or marketed. Sorting and
grading after storage is done to yield better price. In this, the outer dry scales are removed for
better appearance. Proper grading and sorting before storage may also reduce losses. Onions
are categorised based on their size for local marketing, usually the large onions have
excessive demand and fetch good price.

Extra large onion (>6 cm dia.)

Medium (4-6 cm dia.)
Small (2-4 cm dia.)
(Source: National Horticulture Board)

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3.4 Grade Specification
AGMARK standards for onions are classified into following classes:

Table 2: Showing AGMARK Standards and grade designation of Onions

Grade Grade Requirements Grade Tolerances
Designation

Extra class Onion shall be of superior quality. They shall be characteristic of 5% by number or weight
the variety and/or commercial type. The bulbs shall be: - firm of onion not satisfying
and compact; - unsprouted (free from externally visible shoots); - the requirements of the
properly cleaned; - free from swelling caused by abnormal grade, but meeting those
development; - free of root tufts, however, onions harvested of class I grade or,
before complete maturity, root tufts are allowed. They shall be exceptionally, coming
free of defects, with the exception of very slight superficial within the tolerances
blemishes, provided these do not affect the general appearance of ofthat grade.
the produce, the quality, the keeping quality and presentation in
the package.

Class I Onion shall be of good quality. They shall be characteristics of 10% by number or
the variety and/or commercial type. The bulbs shall be: - firm weight of onion not
and compact; - unsprouted(free from externally visible shoots); - satisfying the
properly cleaned; - free from swelling caused by abnormal requirements of the
development; - free of root tufts, however, onions harvested grade, but meeting those
before complete maturity, root tufts are allowed. The following of class II grade or,
slight defects, however, may be allowed, provided these do not exceptionally, coming
affect the general appearance of the produce, the quality, the within the tolerances of
keeping quality and presentation in the package. - a slight defect that grade.
in shape. - a slight defect in colouring; - light staining which
does not affect the last dried skin protecting the flesh, provided it
does not cover more than one-fifth of the bulb’s surface. -
Superficial cracks in and absence of part of the outer skins,
provided the flesh is protected.

Class II Onions which do not qualify for inclusion in higher grade but 10% by number or
satisfy the minimum requirements. They shall be reasonably weight of onion not
firm. The following defects, however, may be allowed, provided satisfying the
the onion retain their essential characteristics as regard the requirements of the
quality, the keeping quality and presentation. - defects in shape; - grade but meeting the
defects in colouring; - early signs of shoot growth visible from minimum requirements.
outside(not more than 10% by number or weight per unit of
presentation); - traces of rubbing; - slight marking caused by
parasites or disease; - small healed cracks; - slight bruising,
healed, unlikely to impair keeping qualities; - root tufts; - stains
which do not affect the last dried skin protecting the flesh
provided they do not cover more than half the bulb’s surface; -
Cracks in the outer skins and the absence of a part of the outer
skins from not more than one-third of the bulb’s surface,
provided the flesh is not damaged.

Source: APEDA

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3.5 Provision concerning Size (APEDA)

Grading
Size is determined by the maximum diameter of the equatorial section, in accordance with the
following table 3:

Table 3: Provision Concerning Size

Difference between the diameter of the smallest and the
Size Code Diameter (in mm.)
largest onion in the same package (in mm.)
A 10-20 5
B 21-40 15
C 41-70 20
Source: APEDA
Designations and definitions of quality for export of onions:

1. Errors in sizing should not be more than 5 per cent by weight of the bulbs in any lot. It may
be count as a next lower grade than the minimum diameter recommended onions.

2. Onion bulbs internally or externally damaged, diseased affecting the quality. The decayed
onions should not exceed 2 per cent in any lot.

3.6 Packaging

Usually limited size packing is done to ensure easy handling of the product during transit.
However, it may vary according to demand. Onions are usually stuffed in jute bags for
shipping to market yard. For safe usage, 40 kg open mesh jute bags should be used in
domestic market. Usually for export, common big onions are filled in 5-25 kg size open mesh
jute bags. (Source: National Horticulture Board)

It needs to be ensured that bulbs for storage are free from any cuts. Also the bulbs must not be
released on to non-resilient surface from more than 6 feet height. If onions are to be arranged
after packing in a store or truck, the prescribed height is 2-2.5 metres. (Source: National
Horticulture Board)

3.7 Transport

Onions are usually transported in bullock carts, tractor trolleys and trucks. Railway wagons
are used for long distance transport within the country. For export purpose, onions are carried
in ventilated ships as well as sailing vessels / motorboats. (Source: National Horticulture
Board)

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3.8 Storage

Onions should be dried effectively either in the field or through artificial means before storing
it. Appropriate storage of bulbs is essential both for seed production and consumption
purposes. Temperature between 10-25°C increases sprouting. Sprouting can be controlled
through maintaining temperature. Also, the rooting can be altered by relative humidity (RH),
usually more the relative humidity, more the rooting. The Periodical spinning of bulbs and
removal of rotten, smashed and sprouted bulbs should also be done. Well-ventilated enhanced
storage structures and required for proper storage. (Source: National Horticulture Board)

NHRDF accumulates the data regarding the onion storage based on the information provided
by different states. Generally, in Maharashtra, Gujarat, Haryana and Western Uttar Pradesh,
large-scale storing of onions is done primarily in conventionally-designed structures
(Gummagolmath, 2013). Maharashtra state stores around 30 per cent of its production during
the rabi season production since during this season onions have better storage quality. Due to
continuous government involvement and support to the states, onion storage in states like,
Madhya Pradesh and Bihar has enhanced significantly during 2017. Though, Karnataka trails
Maharashtra in onion production, the storage-to-production is only 4-5 per cent as the state
produces large quantity of kharif onions. Precisely Maharashtra’s position in production and
storage is quite strategic and will play an important role in handling the onion price volatility
in the country.

Table 4: State-wise onion storage during 2010-17 (Quantity in Lakh MT)

States 2010-11 2011-12 2012-13 2017
Maharashtra 14.50 15.50 15.00 18.00
Gujarat 2.00 1.80 0.85 1.25
Bihar & Jharkhand 1.50 1.50 1.65 3.75
Haryana 0.75 0.75 0.85 1.75
Karnataka 1.25 1.25 0.85 0.40
M.P. & Chhattisgarh 1.75 1.85 1.25 13.50
U.P. & Uttarakhand 1.85 1.80 1.75 3.50
Odisha 0.50 0.50 0.50 0.35
Rajasthan 1.75 1.75 1.85 1.00
Punjab 0.75 0.75 0.75 1.25
Tamil Nadu 1.00 1.00 1.00 0.18
Andhra Pradesh 0.30 0.45 0.45 –
Others 0.50 0.60 0.75 3.80
Total 28.40 29.50 27.50 48.73
Source: National Horticulture Mission and DAC&FW.

3.9 Major Storage Pest and their Control

Extended periods of wet conditions in the four to six weeks prior to harvest will promote the
storage rots caused by Aspergillus and Penicillium spp., especially in hot areas.

13
Table 5: Major storage pest and their control
Major Pest Chemical used Dosage Mode of Other Remedies
Action

Black Mold Bayleton WP,bavistin WP 1gm/ltr Systemic Cultural control-proper

(carbenbazim) 0.1% handling, storage at 33-55
degree F.

Smudge Vitavax 1gm/ltr Systemic Cure & dry onions properly

Quick drying after harvest.
Raxil (tebaconazole) 1gm/ltr Store under cool, dry
conditions.

Gray Mold Bayleton WP,bavistin WP 1gm/ltr Systemic Cultural control-proper

(carbenbazim) 0.1% curing & careful handling.

Source: http://agropedia.iitk.ac.in/content/major-pests-diseases-onion

3.10 Storage Structures

Conventional structures
Onion stored in the traditional ventilated storage structures by majority of farmers in India. It
is natural ventilated without any control of temperature and relative humidity.
Bamboo based structure
As it is clear from its name, this storage is constructed with bamboo framework having the
roof made up with sugarcane leaves. This type of storage structure is low cost and easy to
construct, but leads up to 42% losses of onion during four months of storage. This type of
structure has a provision of ventilation from bottom and sides still results in increasing the
losses up to 46% in four months storage.
Cold storage
Onions are stored at 0-5°C and 60-65 per cent relative humidity that leads to much lesser
losses as comparative to ventilated storage structure. High energy is required to maintain the
storage facility in the temperature range of 0-5°C lead to the high cost of construction and
operations. However, the bulbs start sprouting immediately after they are removed from the
cold storage.
ICAR-Directorate on Onion and Garlic Research, Pune developed a cold storage aiming at
storing onion bulbs in controlled conditions with proper ventilation that enhances their
storage life significantly by utilizing low energy while minimizing sprouting, rotting, and
physiological weight loss. The storage structure maintain the temperature of 27 ± 2 °C and
RH of 60 to 65% with air circulation system.

Improved storage structures help in

 Use of appropriate material for inner walls preventing from built up of high
temperature inside.

14
 
Elevated platforms during construction of storage godown help in reduction of
moisture and dampness.
 Avoid formation of hot and humid spaces within the different onion layers.
 More height at the centre and more slope would increase air circulation and prevent
humid microclimate inside godown.
 Avoid direct sunlight on onion bulbs to diminish sunscald, dwindling of colour and
quality deterioration.
Table 6 Storage capacity and cost of storage in various types of onion storage structures
designed and constructed.

Particulars Traditional Modified Top and Modified Traditional Bottom Bottom

double row bottom bottom Bottom single row Ventilated ventilated
storage ventilated ventilated ventilated storage single row single row low
structure double row storage storage structure storage cost thatched
storage structure structure structure roof storage
structure with mud chain linked structure
plastered side walls
walls
Cost of
construction
(million Rs) 0.225 0.19 0.149 0.125 0.035 0.040 0.005
Length (m) 9.60 9.9 9.9 9.9 5.0 5.0 4.9
Width (m) 7.5 6.0 4.75 3.6 1.2 1.2 1.2
Side height
(m) 2.25 2.25 2.25 2.25 1.2 1.2 1.6
Central height
(m) 3.50 4.5 4.0 4.0 2.2 2.2 1.9
Storage
capacity
(tones) 38 42 31 25 5 5 5
Expected life
(years) 20 20 20 20 20 20 5
Cost of storage
(Rs./Kg/year) 0.38 0.23 0.30 0.25 0.35 0.40 0.20
Construction material
Roof Asbestos Mangalore
Asbestos with Asbestos Asbestos Mangalore tiles Sugarcane
extended
roof tiles leaves/thatch
Side wall Wooden
Wooden bantam Split bamboo Chain link Split Split Bamboo Split Bamboo
plastered
bantam with mud Bamboo
Floor Wooden Wooden Wooden
PCC bantam bantam with bantam with PCC Split bamboo Split bamboo
with C C channel C channel bantam with bantam
channel support support C supported
channel
support support on brick block
Foundation Grouted C
PCC RCC RCC RCC PCC channel Brick support
Source: Tripathi & Lawande (2016)

15
3.11 Storage Facilities

Maharashtra State Agricultural Marketing Board (MSAMB) has build up Rajgurunagar

modified plan for onion storage (Kanda chawl) to support the growers for setting up of
scientific onion storage systems. MSAMB has devised the subsidy scheme for scientific
onion storage. Similarly, Department of Agriculture, Maharashtra State has also implemented
the subsidy scheme for scientific onion storage with the support of NABARD and National
Research Centre for Onion and Garlic. Farmers have to build onion storage structure
according to proposed plan only to get assistance. The expenditure in construction of onion
storeroom is assumed at Rs. 6000/- per MT for this scheme. The subsidy stands to the extent
of Rs.1500/- per MT storage capacity. Storage structure of 5, 10, 15, 20, 25 & 50 MT
capacity are eligible for this subsidy scheme.

16
 4. MARKETING PRACTICES AND CONSTRAINTS

4.1 Trends on Prices and Arrivals

Table 8 highlights the onion arrivals across states and their geographical and seasonal
distribution. On an average during TE 2017, around 13 million tonnes of onion reached the
markets, which is roughly 65-70 per cent of total onion production in this period. However,
this might include some overlapping market transactions as the produce moves from one
market (primary) to other markets (secondary and terminal), remaining 35-40 per cent might
have been retained/disposed of as family consumption, direct purchases, direct export and
wastages. Though a large quantity of onion is being stored in states like Maharashtra, Madhya
Pradesh & Chhattisgarh and Bihar & Jharkhand (Saxena & Chand, 2017), the same is
assumed to be disposed of in the market at any point of the year. Maharashtra is a strategic
state in the onion marketing as the state receives 50 per cent of the onion arrivals in the
country. Most of the price shocks appear during July to October and are largely determined
from shortages in rabi onion supply. Maharashtra coupled with Madhya Pradesh becomes
much more strategic and crucial as the duo comprise of more than 60 per cent of arrivals of
the country during April to September. Afterwards, the role of Karnataka and other kharif
onion supplying states becomes crucial in generating price shocks.

MARKETING PRACTICES

Table 7: Concentrated pockets of Fresh Onions in Fresh Onions growing states

Sr. No. State Districts
1 Maharashtra Nasik, Ahmednagar ,Pune, Sholapur
2 Karnataka Dharwad ,Chitradurg, Gadag, Haveri, Bagalkot, Davengere
3 Andhra Pradesh Kurnool, Medak, Rangareddy, Cuddapah, Mehboobnagar.
4 Uttar Pradesh Varanasi, Patan, Kanpur ,Lucknow, Allahabad, Faizabad
5 Tamil Nadu Coimbatore, Perambadur, Namakkal ,Dindigul Anna,Thirichirapalli,
Periyar
6 Gujarat Bhavnagar, Surendranagar
7 Punjab Ropar and Ludhiana
Source: APEDA

4.2 Distribution of Produce from Primary to Terminal Market

The inter-market onion transaction data are not available as on date. The studies and
observations indicate that major onion producing states in India like Maharashtra and Gujarat
find major markets for their produce in Bhopal, Jaipur, Lucknow and Delhi from where it is
distributed in Northern states like HP, Uttarakhand, J&K, Punjab and Haryana whereas onion
produced in Southern states (like Karnataka, Andhra Pradesh etc) are largely consumed in
Southern states and nearby markets.

17
 Table 8: State-wise arrivals of onion in different seasons (TE 2017)

Arrivals (Th Tons) Seasonal shares (%) Share in the total arrival (%)

Total arrival
Oct-Dec

Oct-Dec

Oct-Dec
Jan-Mar

Jan-Mar

Jan-Mar
Apr-Jun

Apr-Jun

Apr-Jun
Jul-Sep

Jul-Sep

Jul-Sep
Total

Total
State
Maharashtra 1948 1691 1668 1329 6635 29 25 25 20 100 54 42 57 49 50
Madhya Pradesh 114 870 118 140 1241 9 70 9 11 100 3 22 4 5 9
Gujarat 551 333 118 185 1188 46 28 10 16 100 15 8 4 7 9
Uttar Pradesh 274 340 248 184 1046 26 33 24 18 100 8 8 9 7 8
Karnataka 218 230 200 342 990 22 23 20 35 100 6 6 7 13 7
NCT of Delhi 97 107 98 86 387 25 28 25 22 100 3 3 3 3 3
West Bengal 95 94 87 76 352 27 27 25 22 100 3 2 3 3 3
Telangana 62 76 82 70 290 21 26 28 24 100 2 2 3 3 2
Punjab 64 86 66 42 258 25 33 26 16 100 2 2 2 2 2
Rajasthan 46 41 53 84 224 20 18 24 38 100 1 1 2 3 2
Haryana 25 34 47 31 136 18 25 35 23 100 1 1 2 1 1
Orissa 24 21 23 26 94 25 22 24 28 100 1 1 1 1 1
Kerala 24 20 21 20 84 28 24 25 24 100 1 0 1 1 1
Andhra Pradesh 3 2 25 26 55 5 3 45 46 100 0 0 1 1 0
Others 51 66 61 58 237 22 28 26 24 100 1 2 2 2 2
1321 100 10
INDIA 3595 4010 2915 2697
7 27 30 22 20 0 100 100 100 100
Source: Based on data of NHRDF
Onion arrivals and prices
Sept 2018 to Aug 2019 Sept 2019 to Aug 2020 Sept 2020 to Aug 2021
State Arrivals Weighted Arrivals Weighted Avg. Arrivals Weighted
(Tonnes) Avg. Modal (Tonnes) Modal Price (Tonnes) Avg. Modal
Price (Rs./Qtl.) Price (Rs./Qtl.)
(Rs./Qtl.)
Maharashtra 5650233 867 4783723 1952 5517442 1797
Telangana 1108830 838 928204 2433 1403970 2281
Gujarat 1314255 769 1032491 1847 1302080 1650
Madhya Pradesh 1503477 636 731365 1098 825326 1723
Karnataka 1266782 971 1117278 2544 778817 2196
Uttar Pradesh 1020165 1111 722294 2160 703918 2248
Rajasthan 393261 761 292174 1791 359690 2008
NCT of Delhi 401890 964 258120 1890 300519 2211
Punjab 275759 1061 165696 1706 227957 2114
West Bengal 285945 1400 182396 2753 203539 2962
Andhra Pradesh 89873 920 140927 2221 101310 1660
All India 13921421 897 10857959 2082 12111191 1963
Source: Data provided by DMI

4.3 Export

Interestingly, countries’ shares in global trade do not follow specifically their production
shares. For instance, Netherlands, a small country stands at the top in exports of onion (Table
9) because the country exports more than 90 per cent of its onion produce and captures

18
market share of more than 20 per cent. Though China’s onion production is higher than India,
its share in world export is quite less as compared to India in terms of quantity. India is the
second biggest player in global onion market, the country exported around 1.45 million
tonnes in 2020.

Table 9: Major exporter country and quantity exported (Tonnes)

Country 2018 2019 2020
Qty (MT) Value (Th. Qty (MT) Value (Th. Qty (MT) Value (Th.
US$) US$) US$)
Netherlands 1511379 656073 1596080 763569 1751363 797420
India 1688420 419572 1460547 367328 1448718 346640
China 910119 509517 983718 604387 881314 495414
Mexico 432618 428257 351952 360900 424408 419754
Egypt 236973 117967 487000 243895 369240 175100
USA 359717 231679 402437 287698 365406 249935
Spain 356252 176979 412311 213037 357507 155869
Pakistan 210609 48613 166264 67280 303989 124029
Peru 219169 74072 248722 87639 255669 94926
Türkiye 101296 16617 235205 53956 220719 51409
World 7590513 3297905 8485685 3875421 8452243 3607668
Source: FAO statistical database.

Major Export Destinations of Indian Onion (2021-22): There is a lot of demand of Indian
Onion in the world, the country has exported 1.54 million tonnes of fresh onion to the world
for the worth of Rs. 3432.14 crores (497.94 USD Millions) during the year 2021-22. Major
export destinations of Indian onion are Bangladesh, Malaysia, Sri Lanka, Nepal and United
Arab Emirates.

Table 10: Major Export Destinations of Indian Onion

2019-20 2020-21 2021-22
Value (Rs. Value (Rs. Value (Rs.
Country Qty (MT) Lacs) Qty (MT) Lacs) Qty (MT) Lacs)
Bangladesh 2,59,370 55,014 5,52,363 75,548 6,58,722 1,30,125
Malaysia 1,90,694 43,429 1,98,109 46,147 1,70,554 49,091
Sri Lanka 1,25,757 29,324 1,44,713 31,322 1,62,918 41,155
Nepal 75,191 9,441 1,13,565 16,477 1,67,368 27,945
UAE 1,52,530 29,699 1,70,641 33,050 1,22,784 27,896
Indonesia 35,588 4,971 70,741 11,269 37,670 8,680
Qatar 42,302 8,103 45,354 9,336 33,321 7,809
Hong Kong 139 40 10,628 2,173 24,479 7,362
Kuwait 38,642 7,050 39,530 8,369 24,221 5,745
Vietnam 32,292 6,353 25,011 4,195 18,123 4,679
Source: APEDA

Onion Export Policy in India

19
 The major policy instrument to regulate onion export and stabilise domestic market is
minimum export price (MEP). A higher value of MEP is supposed to reduce the exports and
vice versa. The other policy instrument is physical restriction on exports through banning the
exports or canalising (routing) the exports through state trading enterprises. The motive
behind such policies remains the stabilisation of domestic supply of onion and to keep check
on domestic prices turning too high. In India, 47 price notifications regarding onion export
policy have been issued by Directorate General of Foreign Trade during the last nine years.
Surprisingly, mostly of these were issued in just one year i.e. 2011(19 notification) (Table
11). During the same year, onion exports were banned twice. Some varieties of onion like
Bangalore rose onion and Krishnapuram onion having special attributes are treated differently
in implementation of MEP policies. Bangalore rose onions are exclusively grown for the
export markets in certain parts of Karnataka especially in Bengaluru rural, Kolar and
Doddaballapur. The variety got the tag of Geographical Indicator in 2014-15 due to its
specific attributes like shape, deep scarlet red colour, nutrient content (anthocyanin, phenols)
and high pungency.

Time series data on onion prices indicate that 2013 price crises was the most severe
with intense price shock in the recent year. Such a situation needed immediate attention of
policy makers, consequent upon which the MEPs were kept at the historically highest levels.
As the crises became intense, the government responded by repeatedly raising the MEP
which went up to high level of $1150/MT. The situation eased only at the end of December.
A similar price crises situation re-emerged in 2015 which appeared to be little less severe as
compared to 2013 crises. An MEP level of $700/MT was notified in August 2015, which was
8 per cent higher as compared to August 2013 MEP. No further notifications were issued
except in December 2015 when the price situation eased.

An examination of onion prices and policy in the recent years clearly brings out that
domestic supply management needs to follow advance and well thought out plan in response
to the signals given by relevant organizations and averting the price spike situations. An ideal
approach demands proper market intelligence based on production and price forecast. Failing
which the contingent management in terms of higher MEPs and export bans might affect
export earnings of India as a less credible nation as compared to the competing countries like
China and Pakistan. According to onion traders in Maharashtra, foreign buyers often prefer
reliable suppliers who can maintain their commitments and if traders fail on reliability, they
lose customers and their loyalty in international markets (Chengappa et al., 2012). Indications
are emerging that our import destinations in South East Asia are also trying to increase their
levels of self-sufficiency in onion by cultivating similar varieties which we export to them.
Thus, a long term orientation in onion export policy is the need of the hour.

Table 11: Onion export policy in recent years as seen from MEP and export bans

Year Months MEP Date imposed Export Policy relevant to Nature of

(US$) restriction

20
2011 February - 10-Feb-11 Onion all varieties (except Bangalore rose Export ban
onion and Krishnapuram onions) excluding
cut, sliced or broken in powder form
2011 February 11-Feb-11 Onion in (a) cut form (b) sliced form & (c) Export free
broken in powder form can be exported freely
2011 February 15-Feb-11 Bangalore rose onion and Krishnapuram Export permitted
onions excluding cut, sliced or broken in under licence
powder form subject to MEP of
US$ 1400 per
metric ton
2011 February 600 18-Feb-11 Onion all varieties (except Bangalore rose Export permitted
onion and Krishnapuram onions) excluding
cut, sliced or broken in powder form
2011 March 450 01-Mar-11 Onion all varieties (except Bangalore rose MEP of US $ 1400
onion and Krishnapuram onions) continued for
Bangalore Rose
Onions
and Krishnapuram
onions
2011 March 350 08-Mar-11 Onion all varieties (except Bangalore rose MEP of US $ 1400
onion and Krishnapuram onions) continued for
Bangalore Rose
Onions
and Krishnapuram
onions
2011 March 275 16-Mar-11 Onion all varieties (except Bangalore rose MEP of US $ 1400
onion and Krishnapuram onions) continued for
Bangalore Rose
Onions
and Krishnapuram
onions
2011 March 225 23-Mar-11 Onion all varieties (except Bangalore rose MEP of Bangalore
onion and Krishnapuram onions) Rose Onions
and Krishnapuram
onions at US$ 600
per Metric Ton
F.O.B.
2011 March 170 31-Mar-11 Onion all varieties (except Bangalore rose MEP of US $ 600
onion and Krishnapuram onions) continued for
Bangalore Rose
Onions
and Krishnapuram
onions
2011 May - 16-May-11 - MEP of Bangalore
Rose Onions and
Krishnapuram
onions at
US$ 350 per
Metric Ton F.O.B.
2011 June 200 08-Jun-11 Onion all varieties (except Bangalore rose MEP of US $ 350
onion and Krishnapuram onions) continued for
Bangalore Rose
Onions
and Krishnapuram
onions
2011 July 230 15-Jul-11 Onion all varieties (except Bangalore rose MEP of US $ 350
onion and Krishnapuram onions) continued for
Bangalore Rose
Onions
and Krishnapuram
onions
2011 August 275 12-Aug-11 Onion all varieties (except Bangalore rose MEP of Bangalore
onion and Krishnapuram onions) Rose Onions and
Krishnapuram
onions at US$ 400
per Metric Ton

21
 F.O.B.
2011 August 300 24-Aug-11 Onion all varieties (except Bangalore rose MEP of US $ 400
onion and Krishnapuram onions) continued for
Bangalore Rose
Onions
and Krishnapuram
onions
2011 September 475 07-Sep-11 Onion all varieties including Bangalore rose -
onion and Krishnapuram onions
2011 September - 09-Sep-11 Onions all varieties Export prohibited
2011 September 475 20-Sep-11 Onions all varieties (except cut, sliced or Prohibition
powder form) withdrawn and
exports allowed
through STEs,
Exports of cut,
sliced or powder
form made free
2011 November 350 18-Nov-11 Onion all varieties (except Bangalore rose For Bangalore
onion and Krishnapuram onions) Rose Onions
and Krishnapuram
Onions it will be
US$ 400 per MT
F.O.B
2011 November 250 28-Nov-11 Onion all varieties (except Bangalore rose For Bangalore
onion and Krishnapuram onions) Rose Onions
and Krishnapuram
Onions it will be
US$ 300 per MT
F.O.B
2012 January 150 11-Jan-12 Onion all varieties (except Bangalore rose For Bangalore
onion and Krishnapuram onions) Rose Onions
and Krishnapuram
Onions it will be
US$ 250 per MT
F.O.B
2012 February 125 15-Feb-12 Onion all varieties (except Bangalore rose MEP of US $ 250
onion and Krishnapuram onions) continued for
Bangalore Rose
Onions
and Krishnapuram
onions
2012 May - 08-May-12 The export of onion is allowed without any -
MEP upto 2nd July 2012.
2012 June - 29-Jun-12 The export of onion is allowed without any Exports through
MEP STEs
2013 August 650 14-Aug-13 Onion all varieties (except Bangalore rose MEP of US $ 250
onion and Krishnapuram onions) continued for
Bangalore Rose
Onions
and Krishnapuram
onions
2013 September 900 19-Sep-13 Onion all varieties (except Bangalore rose MEP of US $ 250
onion and Krishnapuram onions) continued for
Bangalore Rose
Onions
and Krishnapuram
onions
2013 November 1150 01-Nov-13 Onion all varieties (except Bangalore rose MEP of US $ 250
onion and Krishnapuram onions) continued for
Bangalore Rose
Onions
and Krishnapuram
onions
2013 December 800 16-Dec-13 Onion all varieties (except Bangalore rose MEP of US $ 250
onion and Krishnapuram onions) continued for

22
 Bangalore Rose
Onions
and Krishnapuram
onions
2013 December 350 19-Dec-13 Onion all varieties (except Bangalore rose MEP of US $ 250
onion and Krishnapuram onions) continued for
Bangalore Rose
Onions
and Krishnapuram
onions
2014 March - 06-Mar-14 Onion all varieties MEP removed till
further orders
2014 March - 12-Mar-14 Onion all varieties Export of onion
made free, not
channelized
through STEs
2014 June 300 17-Jun-14 Onion all varieties -
2014 July 500 02-Jul-14 Onion all varieties -
2014 August 300 21-Aug-14 Onion all varieties -
2015 April 250 07-Apr-15 Onion all varieties -
2015 June 425 26-Jun-15 Onion all varieties -
2015 August 700 24-Aug-15 Onion all varieties -
2015 December 400 11 Dec-15 Onion all varieties -
2015 December - 24-Dec-15 Onion all varieties No MEP
2017 June 27-Jun-17
2017 June 30-Jun-17
2017 November 850 23-Nov-17 Imposition of
(MEP). Only on
LC subject to MEP
of US$ 850 F.O.B.
per metric ton till
31.12.2017
2017 December 850 29-Dec-17 Imposition of
(MEP) extended till
20.01.18
2018 January 850 19-Jan-18 Imposition of
(MEP) extended till
20.02.18
2018 February 02-Feb-18 Removal of
Minimum Export
Price (MEP)
2019 September 850 13-Sep-19 Imposition of
(MEP) till further
order.
2019 September - 29-Sep-19 Export & import
prohibited till
further order
2019 October 28-Oct-19 Export of
Bangalore Rose
onion, upto
quantity of 9000
MT, has been
allowed for the
period upto 30th
November.
Source: Directorate General of Foreign Trade

23
4.4 Sanitary and Phyto-Sanitary requirements

Phytosanitary specifications for vegetables, fruits and citrus fruits Application:

The given specifications are applicable to vegetables and fruits, imported against following
TN VED TS Codes.

Designation TNVED TS Code

Large onion, alliums, garlic, leek and other 0703

bulbar vegetables, fresh or frozen

Source: APEDA

The imported quarantined products must be free from the following types of
quarantined harmful organisms in case of fruits and vegetables including onion.(Source:
APEDA)

Packing specifications: During packing of certain fruits and vegetables, use of hay, straw,
chaft, moss, leaves and other vegetable materials as packing material are prohibited due to
quarantined harmful organisms. Wood-w001, saw-dust, paper and plastic must be used as
packing material.

Restrictions on import: Availability of phytosanitary documents is essential (in compliance

with the list for quarantined products*): Phytosanitary certificate, issued by the competent
authority of the country-exporter is also required.

4.5 Export Procedure

The size of packing wholly depends on the requirement of importing country. Some of the
netted poly bag sizes have been given below for different countries. Generally, there are 60
fills per 10kg bag of onion.

Table 12: Packing specifications of some countries

S.No Importing nation Pack size

1 Malaysia and Indonesia 10 kg

2 Srilanka 25 Kg

3 Singapore 8 Kg

4 Philippines 20 Kg

5 Gulf countries 5 Kg, 10 Kg, 15 Kg and 20 Kg

Source: NIAM, Jaipur

24
 Table 13: Size of Onion required by different countries

S. No. Country Size(mm)

Middle East and Gulf(Dubai, Sharjah,
1 Doha, Muscat, Bahrain, Dammam, 40 – 60
Saudi Arabia, Kuwait)
2 Malaysia, Singapore, Port Kelang & African Ports 25 – 30
3 Sri Lanka 25 – 30
4 Bangladesh, Pakistan & Nepal 25 – 30
5 Europe 60 – 70
6 Japan 60 – 70
Source: MSAMB, Pune

Table 14: Documents required for exports of Fresh Onions

Sr. Documents Documents Documents Documents Organic Documents Other
No. related to related to related to related to Certification related to Documents
goods shipment Payment quality of Foreign
goods Exchange
Regulations

1 Invoice Mate Letter of Phytosanitary Certificate GR Form: Bank

Receipt Credit (L/C) Certificate indicating Documents Realization
material required by RBI Certification
produce is which assures to (BRC): This is
based on RBI that the the advice
organic exporter will given by
farming. realize the Foreign
proceeds of Exchange Bank
goods within after the
180 days from realization of
the date of money from
Shipment. Importer.
2 Packing Shipping Bill of GLOBALGAP
List Bill Exchange Certification
3 Certificate Bill of Health
of origin handing Certificate
4 Airway Bill
Source: NAFED

25
 5. MARKETING CHANNELS, COSTS AND MARGINS

Marketing of onion largely takes place through the regulated markets/APMCs. The trade in
regulated markets takes place through designated commission agents and wholesalers. Then,
onions are transacted to retail and terminals markets.

5.1 Marketing Channels

The study conducted by Agricultural Development and Rural Transformation Centre, Institute
for Social and Economic Change (ISEC) Bangalore evaluated the price differences in
wholesale prices, retail Prices and price Realized by farmers for onion. The study also
examined the marketing channels thorough which different varieties of onion were sold.
Results of study are described below.

Figure 4: Percentage of onion sold through Various Channels

Quantity Sold through Various Channels - Onion All Varieties

Commission Agent Regulated Market

Total 22 78

Large 10 90

Medium 33 67

Small 42 58

Marginal 32 68

Onion Marketing in Maharashtra

Within Maharashtra, onion is largely produced in Nashik, Pune and Ahmednagar districts of
the state. As reported, three crops of onions are marketed in Maharashtra with about 10-15
per cent during Kharif, 30-40 per cent as late Kharif and as much as 50-60 per cent rabi crop
harvested during summer season. Like other agricultural commodities, marketing of onions in
the country is also regulated through APMC Act of respective states. The Maharashtra State
Agricultural Marketing Board (MSAMB), Pune was established in 1984, under section 39A
of Maharashtra Agricultural Produce Marketing (Development & Regulation) Act, 1963.
Maharashtra has made suitable amendments in its Maharashtra Agricultural Produce
Marketing (Regulation) Act, 1963, the State amended the Act in June 2006, framed rules in
June 2007 with development led objectives and the amended Act was entitled as

26
“Maharashtra Agricultural Produce Marketing (Development and Regulation) (Amendment)
Act, 2006”. The Act has been amended to promote the competitive marketing of agricultural
commodities.

After the amendment, the State has issued 72 licenses under direct marketing, gave approval
to 7 private markets, identified 33 locations for farmer consumer markets, facilitated contract
farming covering 1 Lakh hectares, organized 20 festivals for promoting special commodity
markets and given licenses to 9 private players under Single License System
(Gummagolmath, 2013). State has also made some efforts to promote Public Private
Partnership and has proposed to set up terminal market for fruits and vegetables at Mumbai,
Nashik and Nagpur (Gummagolmath, 2013). To facilitate the electronic processes in
marketing, the markets are being provided with requisite infrastructural facilities. Under
AGMARKNET project, computerization of 291 APMCs and 54 submarkets is completed
(Gummagolmath, 2013).

Lasalgaon mandi, in Nashik district of Maharashtra, is Asia's largest onion market. There are
550 licensed traders in Lasalgaon APMC which are categorised as A, B and C class traders
with the license fee of 200, 100 and 20, respectively. There are 154 general commission
agents and 9 godown holders. As reported in the Lasalgaon Market Profile at AGMARKNET,
onion is traded through open auction system with a commission of 4 per cent charged from
farmers by the registered commission agents in the Lasalgaon APMC. The onions from
Lasalgaon are supplied to many places in India and also exported to many countries. The
APMC has close linkages with many organizations like NHRDF and Bhabha Atomic
Research Center (BARC) in improving the quality of onions produced and marketed locally.
NHRDF produces and distributes quality seed of onion to the farmers. BARC processes
onions to keep them fresh for a longer time.

As rabi onion has a better shelf life, it is stored by the farmers on-farm in bamboo based
conventional storage structures. Since kharif and late kharif onions are not good for storage,
these are sold by the farmers within 15 days to 1 month after harvest. The onion marketing
chain in Maharashtra is presented in Figure 5 presenting linkages among various
stakeholders. The Nashik division of Maharashtra receives the produce largely from the
producers. The APMCs like Lasalgaon, Pimpalgaon, Yeola etc purely primary markets. As
informed by the mandi officials, there are around 40-45 onion traders in Lasalgaon market
and 16-17 traders in Yeola market. A commission of 4 per cent is charged from the onion
sellers by the Commission Agents. The farmers bring onions in loose form in trucks/trolleys
to sell these to onion traders. The onions are sold through open auction method.

27
Figure 5: Onion marketing system in Maharashtra

Unlicensed Part-time
Wholesalers

Farmers Commission Agents Wholesalers/Traders Retailers

Village Level Commission Agents also Consumers

Middle Men operating as Wholesalers
Source: Chengappa et al. (2012).

In Karnataka and Maharashtra, the agricultural marketing is more or less entirely in the hands
of the intermediate market functionaries, both the states do not have strong network of
postharvest services, infrastructural facilities & amenities and dynamic marketing system
(Chengappa et al., 2012).

5.2 Marketing Costs and Margins

Study on onion different marketing channels in Karnataka (2016) across different farmers
categories based on farm holding size revealed that direct sell in regulated market was major
marketing channel for all farm size categories farmers. Onion price per quintal varied from Rs
982 to 1014 through commission agents. However, quantity sold was very less as compared
to direct sell at regulated market.

Figure 6 : Quantity sold (Qtls.) and Price Received (Rs./Qtls.) under Various Channels -
Onion All Varieties

10000
9000
8000
7000
6000
5000
4000 3009
3000 2371 1919 1996
2000 1014 982 951 1416
1000 123 465 256 379
0
Qty sold Price Qty sold Price Qty sold Price
Comm. Agent Regulated Market Overall
Marginal Small Medium Large Total

28
 6. MARKETING INFORMATION AND EXTENSION

6.1 Price Transmission across Markets

Onion production and market arrivals are concentrated in a few months and states but
they are consumed throughout the country and throughout the year. State-wise market arrivals
follow a more or less similar pattern as production, but a large part of onion is distributed
through the Azadpur market in Delhi. Bengaluru and Solapur are the most important onion
markets in terms of secondary arrivals; however, Lasalgaon has its own importance due to its
strategic location and being a primary producer market. The major markets for onion in
various states and their share in total market arrivals in the state are given in Table 15 As
evident, the strategic position of the markets has been changing specially during the crisis
years.

Table 15: Major markets across major producing states

State Market Market Share (%)
2006/07 Rank 2010- Ran 2013- Ra 2015-16 Ran
- 11 k 14 nk k
2015/16
Solapur 9.08 I 9.19 I 14.6 I 9.5 I
Maharasht

Pune 8.39 II 7.14 III 9.0 II 7.5 II

Lasalgaon 7.48 III 5.94 IV 7.4 III 5.0 VI
Yeola 6.39 IV 5.30 VI 6.0 IV 4.7 VII
ra

Mumbai 6.08 V 8.14 II 4.0 IX 7.4 III

Bengaluru 66.32 I 67.22 I 70.9 I 67.1 I
Karnataka

Hubli 11.63 II 12.54 II 10.9 II 12.3 II

Belgaum 7.04 III 4.12 III 6.1 III 7.2 III
Hassan 2.90 IV 3.97 IV 3.4 IV 3.1 IV
Mysore 2.69 V 2.58 VI 1.5 VII 1.6 VIII
Gondal 18.58 I 8.90 IV 32.4 I 8.1 V
Mahuva 18.19 II 33.90 I 25.5 II - -
Bhavnagar 14.81 III 17.33 II 12.4 III 13.3 II
Gujarat

Ahmedabad 12.02 IV 14.94 III 11.3 IV 11.5 III

Mahuva 11.51 V - - 1.0 XI 35.6 I
(Station Road)
Indore (F&V) 34.99 I 40.01 I 27.6 II 33.3 I
Shujalpur 23.47 II 2.47 IV 37.7 I 20.9 II
Madhya
Pradesh

Sagar 6.20 III 6.29 III 8.0 III -

Indore 5.02 IV - - -
Ujjain 4.07 V 8.60 II 5.2 IV -
Source: Computed based on Agmarknet data.

6.2 Price Movements of Onion Prices in major markets

The onion price behaviour at aggregate level can be depicted from the wholesale price
indices computed and published by the Office of Economic Advisor, Ministry of Industry,
GoI. The volatility in onion prices has been much more pronounced after 2009 with price
spikes becoming bigger and more frequent. India faced three recursive extreme price shocks

29
during last five years with crises occurring every alternate year followed by situation of price
falls (extreme in 2016). Onion WPI touched the highest value of 619 in January 2011. In
2013, highest ever onion WPI was recorded in September 2013. Year 2015 also led the WPI
to jump to an index of 758, which was, of course, lower than the previous shocks.

As indicated in the previous sections, Maharashtra, Madhya Pradesh, Karnataka and

Delhi are major onion marketing states, the price signals are also likely to flow across these
states and also to other states. Figure 7 provides the movement of prices in selected markets
of Maharashtra, Karnataka and Madhya Pradesh along with the WPI onion as well as the
export price of onion. It is observed that the prices move in a similar fashion exhibiting
similar ups and down swings in prices. Major peaks in the prices are noticed in 2010, 2013
and 2015 which were the onion price crises years. Major pattern are observed as follows:

1. Prices in major onion markets including the WPI exhibit similar movements.
2. Onion prices in Bengaluru market remain at a higher level as compared to other
markets probably due to trading of locally superior and export oriented varieties like
Bangalore Rose onions.
3. The prices in Solapur market remain at a lower level as compared to the prices in
other selected markets
4. As obvious, the export prices of onion remained higher than the prices prevailing in
domestic markets
5. Export prices usually followed/attained their peaks with one month lag with peak in
domestic prices indicating that price spikes originate in domestic market not in
overseas market.

Figure 7: Movement of onion prices in selected markets

Source: Agmarknet and office of the Economic Advisor.

30
800000
Monthly Arrivals in Major Markets (Tonnes)
700000
Lasalgaon
600000 Pimpalgaon
Mahuva
500000
Banglore
400000 Delhi

300000

200000

100000

0
Dec

Dec

Dec

Dec

Dec

Dec

Dec

Dec

Dec

Dec

Dec

Dec

Dec

Dec

Dec
Jun

Jun

Jun

Jun
Jun

Jun

Jun

Jun

Jun

Jun

Jun

Jun

Jun

Jun

Jun

Jun
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Monthly Wholesale Prices in Major Markets (Rs/Qtl)

9000

8000

7000

6000
Lasalgaon
5000
Pimpalgaon
4000
Mahuva
3000 Banglore
2000 Delhi

1000

0
Jan

Jan

Jan

Jan

Jan

Jan

Jan

Jan

Jan

Jan

Jan

Jan

Jan

Jan

Jan

Jan
Jul

Jul
Jul

Jul

Jul

Jul

Jul

Jul

Jul

Jul

Jul

Jul

Jul

Jul

Jul

Jul

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

6.3 Cointegration and Causality in Onion Prices

Cointegration Analysis: As Lasalgaon is the largest onion market in the country, two-step
Engle-Granger method was used to check the cointegration between Lasalgaon and other
domestic markets, exports and WPI. The cointegration equation was estimated using OLS
(ordinary least square) and the residuals from the estimation were examined. The variables
are considered co-integrated if the residuals generated from the equations are found to be
stationary. The following equations provide the estimates obtained from OLS equations.
ln L = -1.61 + 1.21 ln D
(0.000) (0.000)
ln D = 1.75 + 0.76 ln L
(0.000) (0.000)
ln L = -1.58 + 1.20 ln B
(0.000) (0.000)

31
 ln B = 1.84 + 0.748 ln L
(0.000) (0.000)
ln L = -2.15 + 1.33 ln H
(0.000) (0.000)
ln H = 2.21 + 0.65 ln L
(0.000) (0.000)
ln L = -0.37 + 1.05 ln P
(0.006) (0.000)
ln P = 0.63 + 0.90 ln L
(0.000) (0.000)
ln L = 0.28 + 1.00 ln S
(0.103) (0.000)
ln S = 0.29 + 0.90 ln L
(0.081) (0.000)

where, ln L = log value of Lasalgaon prices;

ln D = log value of Delhi prices;
ln B= log value of Bengaluru prices;
ln H= log value of Hubli prices;
ln P= log value of Pune prices
ln S= log value of Solapur prices
(Figures in parentheses indicate the probability value.)

The residuals from the above equations were checked for stationarity using ADF unit root test
and these were found to be stationary at level. Thus, Lasalgaon and all other market prices
were found to be cointegrated with each other.

Causality between the Export Prices and the Domestic Prices

Figure 8 presents the causal relation between prices in Lasalgaon and other markets.
Lasalgaon prices granger cause prices in all the markets except Hubli and Solapur. In terms of
arrival, Solapur receives larger arrival as compared to Lasalgaon, thus, Solapur market
granger causes the prices in Lasalgaon, while the reverse is not found true. Also, prices in
Hubli, Pune and Solapur granger cause Lasalgaon, while prices in Bengaluru and Delhi do not
cause prices in Lasalgaon. Thus, Lasalgaon shares bidirectional causal relationship with Pune
only. Lasalgaon granger causes WPI.

32
 Figure 8: Transmission of price signals between the producing market (Lasalgaon) and other
markets

WPI
HUBLI BENGALURU

PUNE SOLAPUR
LASALGAON

INDORE DELHI

EXPORT

Null Hypothesis F-Statistic Prob.

Lasalgaon does not granger cause Bengaluru 3.813 0.025
Lasalgaon does not granger cause Delhi 10.748 0.000
Lasalgaon does not granger cause Hubli 2.206 0.115
Lasalgaon does not granger cause Pune 3.335 0.039
Lasalgaon does not granger cause Solapur 2.581 0.080
Lasalgaon does not granger cause WPI 8.878 0.000
Lasalgaon does not Granger Cause Indore 19.352 0.000
Lasalgaon does not Granger Cause Export price 38.920 0.000
Delhi does not granger cause Lasalgaon 2.969 0.055
Hubli does not granger cause Lasalgaon 6.447 0.002
Pune does not granger cause Lasalgaon 17.565 0.000
Solapur does not granger cause Lasalgaon 6.073 0.003
Export price does not Granger Cause Lasalgaon 0.231 0.794
Indore does not Granger Cause Lasalgaon 2.230 0.110
Bengaluru does not granger cause Lasalgaon 2.119 0.125
Drawn based on the probabilities level of less than 0.05

Source: Authors’ computations.

Figure 9 shows the causal relationship between prices in Delhi and other markets. Delhi,
being a consuming market, is affected by the price changes emanating from other markets.
Prices in Delhi granger cause prices in Bengaluru, Hubli and WPI. It does not granger cause
prices in Lasalgaon, Pune and Solapur. However, prices in all the other markets granger cause
prices in Delhi. So, Delhi shares bidirectional causal relationship with Bengaluru and Hubli.
Delhi granger causes WPI.

33
Figure 9: Transmission of price signals between the consuming market (Delhi) and other
markets

HUBLI WPI
BENGALURU

PUNE SOLAPUR
DELHI

INDORE LASALGAON

EXPORT

Null Hypothesis F-Statistic Prob.

Delhi does not granger cause Bengaluru 4.713 0.011
Delhi does not granger cause Hubli 3.273 0.041
Delhi does not granger cause Lasalgaon 2.969 0.055
Delhi does not granger cause Pune 0.734 0.482
Delhi does not granger cause Solapur 1.581 0.210
Delhi does not granger cause WPI 6.894 0.002
Delhi does not granger cause Indore 7.552 0.000
Delhi does not granger cause Export price 30.332 0.000
Bengaluru does not granger cause Delhi 8.315 0.000
Hubli does not granger cause Delhi 17.538 0.000
Lasalgaon does not granger cause Delhi 10.748 0.000
Pune does not granger cause Delhi 15.742 0.000
Solapur does not granger cause Delhi 23.018 0.000
Indore does not granger cause Delhi 2.131 0.120
Export price does not granger cause Delhi 1.031 0.360
Drawn based on the probabilities level of below 0.05

Source: Authors’ computations.

Indore is affected by the prices in all other markets; whereas, it does not affect the
prices in other markets except Solapur. Export prices neither granger cause prices in any of
the domestic markets nor WPI. However, prices in all the markets granger cause export
prices. So, there is unidirectional causal relationship between export prices and domestic
market prices wherein, causality runs from domestic market prices towards export prices but
not vice-versa. This is quite logical that if domestic prices are high, the traders will export
only when sufficiently large margins are available over the domestic prices. Further, the
Government would announce a relatively higher MEP to discourage the exports, so if some
quantity is exported to meet the commitments, that would obviously be the higher price.

34
6.4 Price Transmission between Lasalgaon and other Markets

The coefficient of error correction term denotes the speed of adjustment; the higher
the speed of adjustment, the higher is the chance of correction of any disequilibrium caused
due to change in any phenomenon. It is observed that when Lasalgaon is considered to be
dependent on other markets, the speed of adjustment is very low in general in Lasalgaon. This
is probably due to the reason that only one way transaction exists between the markets i.e.
Lasalgaon only supplies the produce to the other markets. However, in some cases especially
Solapur and Hubli, the speed of adjustment is found to be higher in Lasalgaon as compared to
the other way. As Solapur is the nearby secondary market of onion, the stored quantity might
be released due to which faster error correction mechanism takes place. The speed of
adjustment is found to be highest (49 per cent) when the prices in Pune are affected by the
prices in Lasalgaon. The speed of adjustment is very low (10 per cent), for prices in
Lasalgaon to get adjusted to changes in prices in Delhi.

The following ECM equations measure the short-term relationship between Lasalgaon market
and other markets

∆𝑙𝑛𝐿𝑎𝑠𝑎𝑙𝑔𝑎𝑜𝑛𝑡 = -0.102 𝐸𝐶𝑇𝑡−1 + 0.227 ∑ 𝛥𝑙𝑛𝐷𝑒𝑙ℎ𝑖𝑡−1 + 0.279 ∑𝛥𝑙𝑛𝐿𝑎𝑠𝑎𝑙𝑔𝑎𝑜𝑛𝑡−1

∆𝑙𝑛𝐷𝑒𝑙ℎ𝑖𝑡 = -0.607 𝐸𝐶𝑇𝑡−1 + 0.056 ∑𝛥𝑙𝑛𝐿𝑎𝑠𝑎𝑙𝑔𝑎𝑜𝑛𝑡−1 + 0.388 ∑ 𝛥𝑙𝑛𝐷𝑒𝑙ℎ𝑖𝑡−1

∆𝑙𝑛𝐿𝑎𝑠𝑎𝑙𝑔𝑎𝑜𝑛𝑡 = -0.205 𝐸𝐶𝑇𝑡−1 + 0.174 ∑ 𝛥𝑙𝑛𝐵𝑎𝑛𝑔𝑎𝑙𝑜𝑟𝑒𝑡−1 + 0.319 ∑𝛥𝑙𝑛𝐿𝑎𝑠𝑎𝑙𝑔𝑎𝑜𝑛𝑡−1

∆𝑙𝑛𝐵𝑎𝑛𝑔𝑎𝑙𝑜𝑟𝑒𝑡 = -0.414 𝐸𝐶𝑇𝑡−1 + 0.026 ∑𝛥𝑙𝑛𝐿𝑎𝑠𝑎𝑙𝑔𝑎𝑜𝑛𝑡−1 + 0.421 ∑ 𝛥𝑙𝑛𝐵𝑎𝑛𝑔𝑎𝑙𝑜𝑟𝑒𝑡−1

∆𝑙𝑛𝐿𝑎𝑠𝑎𝑙𝑔𝑎𝑜𝑛𝑡 = -0.347 𝐸𝐶𝑇𝑡−1 + 0.310 ∑ 𝛥𝑙𝑛𝐻𝑢𝑏𝑙𝑖𝑡−1 + 0.280 ∑𝛥𝑙𝑛𝐿𝑎𝑠𝑎𝑙𝑔𝑎𝑜𝑛𝑡−1

∆𝑙𝑛𝐻𝑢𝑏𝑙𝑖𝑡 = -0.111 𝐸𝐶𝑇𝑡−1 + 0.119 ∑𝛥𝑙𝑛𝐿𝑎𝑠𝑎𝑙𝑔𝑎𝑜𝑛𝑡−1 + 0.317 ∑ 𝛥𝑙𝑛𝐻𝑢𝑏𝑙𝑖𝑡−1

∆𝑙𝑛𝐿𝑎𝑠𝑎𝑙𝑔𝑎𝑜𝑛𝑡 = -0.124 𝐸𝐶𝑇𝑡−1 + 0.919 ∑ 𝛥𝑙𝑛𝑃𝑢𝑛𝑒𝑡−1 - 0.356 ∑𝛥𝑙𝑛𝐿𝑎𝑠𝑎𝑙𝑔𝑎𝑜𝑛𝑡−1

∆𝑙𝑛𝑃𝑢𝑛𝑒𝑡 = -0.496 𝐸𝐶𝑇𝑡−1 - 0.390 ∑𝛥𝑙𝑛𝐿𝑎𝑠𝑎𝑙𝑔𝑎𝑜𝑛𝑡−1 + 0.965 ∑ 𝛥𝑙𝑛𝑃𝑢𝑛𝑒𝑡−1

∆𝑙𝑛𝐿𝑎𝑠𝑎𝑙𝑔𝑎𝑜𝑛𝑡 = -0.473 𝐸𝐶𝑇𝑡−1 + 0.050 ∑ 𝛥𝑙𝑛𝑆𝑜𝑙𝑎𝑝𝑢𝑟𝑡−1 + 0.419 ∑𝛥𝑙𝑛𝐿𝑎𝑠𝑎𝑙𝑔𝑎𝑜𝑛𝑡−1

∆𝑙𝑛𝑆𝑜𝑙𝑎𝑝𝑢𝑟𝑡 = -0.127 𝐸𝐶𝑇𝑡−1 + 0.211∑𝛥𝑙𝑛𝐿𝑎𝑠𝑎𝑙𝑔𝑎𝑜𝑛𝑡−1 + 0.240 ∑ 𝛥𝑙𝑛𝑆𝑜𝑙𝑎𝑝𝑢𝑟𝑡−1

Impact of Price Shocks

Figure 10 shows the results of impulse response functions which describe how and to
what extent a standard deviation shock in one of the onion market (Lasalgaon) affects the
current as well as future prices in all the integrated markets over a period of ten months. It is
observed that when a standard deviation shock is given to Lasalgaon market, an immediate
and a high response was noticed in almost all markets between second and fourth month
reaching a peak at third month. After fourth month, the response starts to decline and reaches
negative in case of Bengaluru, Delhi and Pune. The increase and decline were steeper in case
of Pune market.

35
36
 Figure 10: Response of other markets to change in price in Lasalgaon market
Response of WPI to LASALGAON
Response of PUNE to LASALGAON
.4
.4

.3 .3

.2
.2

.1
.1
.0

.0
-.1

-.2 -.1
1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10
Response of BANGALORE to LASALGAON
Response of DELHI to LASALGAON
.4
.4

.3
.3

.2 .2

.1 .1

.0 .0

-.1 -.1
1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10
Source: Authors’ computations.

This shows that if a shock is arising in Lasalgaon market it is transmitted to all other
markets with a higher response in the approaching months exhibiting a dominance of
Lasalgaon market in onion price determination in the country. The response was found to be
higher in case of Pune market.

6.5 Production-Price Linkages in Maharashtra

It is important to understand the production-arrival linkages along with price dynamics to

understand the recurring price shocks in the country. As evident, the year-on-year (YOY)
growth in onion production reveals that previous year’s growth during the crisis preceding
year plays a determining role. This becomes evident from close examination of the sequence
of change in production, market arrival and prices during the crisis year and in the year
preceding the price crisis. This is examined by using the evidence from the state of
Maharashtra (Table 16), which is the largest onion producing state and market leader for
onion.

A very strong and significant association is seen between the production in year T and
market arrivals in the year T+1. The sequence of change is seen for the last 12 years. In these

37
ten years, production of onion witnessed decline in four years followed by the decline in
market arrivals in the subsequent year in each case. The next change was seen in domestic
prices. In year 2007-08, the production declined by about 4 per cent leading to decline in
arrivals in 2008-09 by about 9 per cent. This sequence got repeated in the years 2009-10,
2012-13 and 2014-15, where production decline of about 20, 17 and 9 per cent led to 17, 16
and 12 per cent decline in arrivals, respectively. The discussion with traders and farmers
revealed that production decline not only resulted in the decline in market arrivals but also the
quality as the production shock resulted mainly due to untimely rains and thunderstorms. This
further affected the storability of rabi onion and reduced the shelf life of the crop.
Corresponding to this, prices increased exorbitantly by around 70 per cent in Maharashtra in
2013. Similarly, an aggregate price increase of 4 per cent at the state level was observed in
2015. However, the disaggregate impacts were much higher.

Nashik division is the major cluster producing rabi onion in Maharashtra. Nashik,
Ahmednagar, Dhulia, Jalgaon and Nandurgaon are major producing districts in the Nashik
division. This cluster is the most important rabi producing onion cluster in the country and the
crisis is triggered from climate and production shocks in the region. Lasalgaon, Yeola and
Pimpalgaon are the most important primary onion markets receiving arrival only from the
onion producers. On the other hand, Solapur, Mumbai, Pune are the major secondary onion
markets in the state. The contribution of the rabi crop in total onion produced in the cluster is
gaining prominence and contributed about 70 per cent in the year 2013-14.

Table 16: Trends in production, arrival and prices of onion in Maharashtra

Year Production Arrival Price Change in Change in Change in Price
(Th tons) (Th tons) (Rs/ton) Production (%) Arrival (%)
(%)

2005-06 2469 2321 396

2006-07 2812 2417 537 13.9 4.1 35.6
2007-08 2713 2985 564 -3.5 23.5 5.0
2008-09 3933 2719 734 44.9 -8.9 30.1
2009-10 3146 4113 860 -20.0 51.3 17.2
2010-11 4905 3405 1051 55.9 -17.2 22.2
2011-12 5638 3308 594 14.9 -2.8 -43.5
2012-13 4660 3702 878 -17.3 11.9 47.8
2013-14 5864 3108 1489 25.8 -16.1 69.6
2014-15 5362 3548 1333 -8.6 14.2 -10.5
2015-16 6529 3132 1382 21.8 -11.7 3.7
2016-17 - 5603 660 - 78.9 -52.2
Source: Authors’computations based on NHRDF and Agmarknet data.

An extreme situation of price fall was observed in 2016-17, where prices declined by about
52 per cent creating disastrous situation for onion farmers of the region. The farmers lost on
two counts: a) the loss in revenue resulted from extreme price fall b) the loss of revenue from
the competitive crop as area was shifted from other seasonal crops.

38
 Figure 11: Seasonality in prices and arrival of onion in Lasalgaon (2005-15)

Note: Figures are seasonal indices for onion arrivals and prices

Note: Series 1 presents the onion arrivals in quintals and series 2 presents the onion prices in Rs/quintal

Note: Series 1 presents the onion arrivals in quintals and series 2 presents the onion prices in Rs/quintal

Variance Decomposition in Onion Prices across Markets

As revealed that the shocks generate from the primary onion markets and spread
throughout the markets in the country, the variance decomposition technique was applied for
examining the price changes in other markets caused due to price changes in Lasalgaon

39
prices. As Delhi is a major consuming and distributing market, the time series onion
wholesale price data were standardized by dividing with the Delhi wholesale price of onion
(Table 17). After standardization, the series became stationary at the level. It can be observed
that Lasalgaon is the major influencing market for all the selected markets. As markets are
co-integrated, the price signals are transmitted slowly to other markets as well. In case of
Lasalgaon market, Lasalgaon prices are influenced by the changes in its own price. This
seems to be very logical as Lasalgaon is the biggest primary market of onion and does not
receive produce from any other markets. Thus, only the changes on supply front in the
surrounding producing clusters will bring the change in Lasalgaon.
Lasalgaon has been a major change agent in causing variation in other markets too,
mainly in Pune, Solapur and Indore markets. Lasalgaon is located at the distance of 200-400
kms from these markets, so the physical movement of onion can easily take place between
Lasalgaon and these markets. The long run impact of Lasalgaon in Indore has been quite
significant. Hubli is the only market which seems to be least affected by its own price
changes. Hubli dominates in terms of supply of kharif onions. Kharif onions comprise of
more than 60 per cent of total long term annual arrivals of Hubli. Therefore, it has to maintain
linkages with markets which can supply rabi onions and meet the consumption requirements
throughout the year.

40
 Table 17: Variance decomposition in onion prices for selected markets of India
Variance Periods
Decomposition Markets 1 2 3 4 5 6 7 8 9 10 11 12
Lasalgaon S.E. 0.13 0.16 0.18 0.18 0.19 0.19 0.20 0.20 0.20 0.20 0.20 0.20
Lasalgaon 100.0 97.8 89.8 87.6 85.0 80.5 77.0 75.8 75.2 74.5 74.0 73.7
Bengaluru 0.0 0.0 0.1 0.3 0.5 2.8 4.9 5.3 5.3 5.3 5.2 5.2
Solapur 0.0 0.0 0.7 2.2 2.9 2.8 2.6 2.6 2.6 2.6 2.6 2.6
Indore 0.0 0.7 5.2 5.1 5.0 4.8 4.7 4.6 4.6 4.6 4.5 4.5
Pune 0.0 1.4 3.9 3.7 5.4 7.7 8.4 8.5 8.8 9.3 9.7 10.0
Hubli 0.0 0.2 0.3 1.1 1.2 1.5 2.4 3.2 3.6 3.7 3.8 3.9
Bengaluru S.E. 0.14 0.17 0.18 0.18 0.19 0.20 0.20 0.20 0.20 0.20 0.20 0.21
Lasalgaon 24.4 18.7 17.4 19.2 18.7 17.2 16.7 16.8 16.9 16.9 16.9 17.0
Bengaluru 75.6 80.4 76.2 73.4 67.5 61.5 60.3 60.1 59.9 59.8 59.7 59.6
Solapur 0.0 0.1 0.4 0.6 2.0 4.0 4.3 4.3 4.3 4.2 4.2 4.2
Indore 0.0 0.5 5.5 5.3 6.4 8.8 9.5 9.6 9.6 9.6 9.5 9.5
Pune 0.0 0.0 0.2 0.5 4.1 7.4 8.0 8.0 8.1 8.1 8.1 8.1
Hubli 0.0 0.3 0.3 1.0 1.3 1.2 1.2 1.2 1.3 1.4 1.5 1.5
Solapur S.E. 0.11 0.14 0.15 0.15 0.15 0.16 0.16 0.16 0.16 0.16 0.16 0.17
Lasalgaon 30.1 29.6 26.1 25.6 25.2 24.1 23.1 22.6 22.3 22.3 22.2 22.1
Bengaluru 11.5 18.7 18.9 18.5 18.8 18.0 18.1 19.0 19.2 19.1 19.0 18.9
Solapur 58.4 49.8 46.3 45.5 44.9 43.2 41.5 40.4 40.0 39.8 39.6 39.4
Indore 0.0 1.4 6.8 7.1 7.1 7.1 6.9 6.7 6.8 6.8 6.9 6.8
Pune 0.0 0.2 0.5 1.2 2.0 5.4 7.8 8.3 8.6 8.8 9.2 9.5
Hubli 0.0 0.2 1.5 2.0 2.0 2.2 2.6 3.0 3.1 3.2 3.2 3.2
Indore S.E. 0.11 0.13 0.14 0.15 0.16 0.16 0.16 0.16 0.17 0.17 0.17 0.17
Lasalgaon 33.4 43.4 47.7 47.9 48.8 48.9 48.7 48.6 48.5 48.5 48.4 48.3
Bengaluru 0.6 2.7 3.0 3.3 3.8 3.7 4.4 5.1 5.2 5.2 5.2 5.2
Solapur 0.0 1.3 1.1 2.5 2.7 2.6 2.5 2.5 2.6 2.6 2.6 2.6
Indore 66.0 51.5 44.6 40.4 37.5 35.8 34.9 34.3 34.1 34.0 34.0 33.9
Pune 0.0 0.8 3.1 3.6 3.4 4.9 5.5 5.5 5.6 5.7 5.9 6.0
Hubli 0.0 0.2 0.5 2.3 3.7 4.1 4.0 4.0 3.9 3.9 3.9 4.0
Pune S.E. 0.15 0.19 0.21 0.21 0.22 0.22 0.22 0.23 0.23 0.23 0.23 0.23
Lasalgaon 47.5 44.0 40.5 38.2 38.2 37.2 36.1 35.8 35.8 35.6 35.5 35.5
Bengaluru 4.7 2.9 4.8 6.9 6.9 8.1 10.5 11.1 11.1 11.2 11.2 11.1
Solapur 4.3 3.4 3.0 4.2 4.5 4.4 4.2 4.2 4.2 4.3 4.3 4.3
Indore 0.0 1.3 3.4 3.5 3.8 4.4 4.4 4.5 4.5 4.6 4.7 4.8
Pune 43.4 48.5 48.3 46.5 45.4 44.6 43.3 43.0 42.9 42.9 42.8 42.8
Hubli 0.0 0.0 0.0 0.8 1.3 1.2 1.4 1.5 1.5 1.5 1.5 1.5
Hubli S.E. 0.13 0.16 0.17 0.18 0.19 0.19 0.20 0.20 0.20 0.21 0.21 0.21
Lasalgaon 27.1 21.9 18.7 18.4 18.1 17.6 17.2 16.9 16.6 16.6 16.8 17.2
Bengaluru 27.7 27.9 26.0 23.8 22.7 21.7 21.2 20.9 21.0 21.1 21.1 20.9
Solapur 4.0 2.8 3.1 3.7 4.5 5.4 5.8 5.7 5.6 5.4 5.3 5.3
Indore 1.9 4.6 7.5 7.1 7.2 9.1 10.4 11.0 10.8 10.5 10.2 10.0
Pune 0.2 0.1 0.2 0.3 0.7 1.0 1.0 2.1 3.9 5.3 6.1 6.5
Hubli 39.0 42.7 44.5 46.7 46.8 45.2 44.3 43.3 42.2 41.1 40.4 40.0

41
 7. ALTERNATIVE SYSTEMS OF MARKETING

NAFED provides marketing support to state level Marketing Federations, Primary

Agricultural Cooperative Marketing societies and the National Cooperative Development
Corporation.

7.1 Marketing Reforms Undertaken by the States

The APMC Model Act on introducing marketing reforms in agriculture was circulated to the
states for its implementation. There are few states which have fully amended and notified
APMC Act. Karnataka, Rajasthan Himachal Pradesh, Jharkhand, Gujarat and Goa are
pioneering states, which have fully amended and notified the APMC Act. In states like Uttar
Pradesh, West Bengal, J&K, Meghalaya, Puducherry, Delhi, Arunachal Pradesh and Assam,
the implementation of marketing reforms are in nascent stage. States like Kerala, Manipur,
A&N island, D&N Haweli, Daman & Diu and Lakshadweep don’t have APMC.

Table 18: State wise market reform status

Developed and functioning Developing stage Laggard Don’t have APMC

Karnataka Madhya Pradesh Bihar Kerala

Rajasthan Sikkim Uttar Pradesh Manipur

Jharkhand Uttrakhand West Bengal Andaman & Nikobar

Gujarat Nagaland Jammu & Kashmir D & N Haweli

Goa Mijoram Meghalaya Daman & Diu

Andhra Pradesh Tripura Puducherry Lakshadweep

Telangana Punjab Delhi

Maharashtra Haryana Arunachal Pradesh

Tamilnadu Assam
Chandigarh

Source: DMI

42
7.2 Reform-Induced Developments: E-Markets

Table 19: Details of mandis and traders registered on eNAM, in different States/UTs

State/ UT Mandies Traders FPOs Farmer No. of Unified

licenses issued
by State
Andhra Pradesh 33 3483 177 1445806 3,483
Chandigarh 1 114 0 7106 0
Chhattisgarh 14 3126 22 135253 36
Gujarat 122 9444 110 869102 9,444
Haryana 81 14486 243 2725243 35
Himachal Pradesh 19 2015 56 124506 0
Jammu and 2 237 4 957 0
Kashmir
Jharkhand 19 2315 120 247554 104
Karnataka 2 662 13 1455 662
Kerala 6 354 7 2792 35
Madhya Pradesh 80 22378 104 3007337 1,070
Maharashtra 118 21548 268 1217277 0
Odisha 41 7504 208 285380 7,504
Puducherry 2 181 2 13529 0
Punjab 37 2611 10 217427 1
Rajasthan 144 82924 189 1500993 82,924
Tamil Nadu 63 6375 108 312051 3,768
Telangana 57 5803 62 1823790 5,803
Uttar Pradesh 125 35157 271 3315390 90
Uttarakhand 16 4738 44 54329 4,738
West Bengal 18 3994 171 49819 33
Total 1000 229,449 2,189 17,357,096 1,19,730
Source: https://enam.gov.in/

43
7.3 Availability of Marketing Infrastructure

Table 20: Details of wholesale, Rural Primary and Regulated Markets in Different
States/UTs (As on 31.03.2015)
Number of Markets Regulated Markets
Regulated
Total market Sub markets per
Rural per lakh gross Principal market lakh gross
States/UTs Wholesale primary Total cropped area markets yards Total cropped area
Andhra Pradesh 190 157 347 4.3 190 157 347 4.3
Bihar 325 1469 1794 23.7 - - - -
Chhattisgarh 2 1132 1134 19.9 69 118 187 3.3
Goa 4 24 28 17.7 1 7 8 5.1
Gujarat 205 129 334 2.7 213 187 400 3.2
Haryana 281 195 476 7.4 107 174 281 4.3
Himachal Pradesh 42 35 77 8.2 10 44 54 5.7
Jammu & Kashmir 0 8 8 0.7 11 0 11 1.0
Jharkhand 201 602 803 48.0 28 173 201 12.0
Karnataka 315 730 1243 10.1 157 356 513 4.2
Kerala 348 1014 1362 52.1 - - - -
Madhya Pradesh 0 0 0 0.0 254 284 538 2.2
Maharashtra 881 3500 4381 18.8 305 603 908 3.9
Odisha 398 1150 1548 30.0 54 382 436 8.4
Punjab 424 1390 1814 23.1 150 274 424 5.4
Rajashthan 446 312 758 2.9 134 312 446 1.7
Tamil Nadu 0 0 0 0.0 277 6 283 4.8
Telangana 150 110 260 4.1 150 110 260 4.1
Uttar Pradesh 584 3464 4048 15.6 250 365 615 2.4
Uttarakhand 36 30 66 6.0 26 32 58 5.3
West Bengal 279 3250 3529 36.7 20 464 484 5.0
N.E States

Assam 405 735 1140 27.8 20 206 226 5.5

Arunachal Pradesh 5 66 71 24.0 0 0 0 0.0
Manipur 24 95 119 31.6 - - - -
Meghalaya 35 85 120 35.0 2 0 2 0.6
Mizoram 7 218 225 197.6 - - - -
Nagaland 19 174 193 38.7 18 0 18 3.6
Sikkim 7 12 19 12.9 - - - -
Tripura 84 470 554 - 21 0 21 -
Union Territories
A & N Islands 0 28 28 115.3 - - - -
Chandigarh 1 0 1 51.2 1 0 1 51.2
D & N Haveli 0 0 0 0.0 - - - -
Daman & Diu 0 0 0 0.0 - - - -
Delhi 30 0 30 84.9 7 8 15 42.5
Lakshadweep 0 0 0 0.0 - - - -
Pudducherry 4 5 9 35.6 4 5 9 35.6
Source: Doubling Farmers Income Report Volume III

44
 Table 21: Number of Cold Storages and Capacity (in metric tons) in India

States/UTs 2014 2015 2016 2017

Number Capacity Number Capacity Number Capacity Number Capacity

Andhra Pradesh & 404 1577828 413 1622320 426 1729286 432 1757785
Telengana

Bihar 303 1406395 304 1411395 305 1416095 305 1416095

Chhattisgarh 89 427766 97 470546 98 484557 98 484557
Goa 29 7705 29 7705 29 7705 29 7705
Gujarat 560 2030873 625 2323175 692 2570973 753 2875713
Haryana 295 588649 307 638601 318 695795 336 741446
Himachal Pradesh 32 38557 34 53009 53 105726 63 119167

Jammu &
Kashmir 28 64769 29 69769 33 100976 36 112206
Jharkhand 55 217280 56 221680 57 226680 58 236680

Karnataka 189 526752 192 536333 193 548001 194 553401

Kerala 197 78355 197 78355 196 78105 196 78105

Madhya Pradesh 260 1097168 275 1168321 294 1253715 294 253715
Maharashtra 540 706303 555 762798 575 881860 581 896730

Orissa 111 326639 120 366699 167 523139 170 538139

Punjab 606 2004778 617 2051377 655 2152003 655 2152003

Rajasthan 154 480032 157 490888 159 521387 161 527893

Tamil Nadu 163 295671 165 304771 168 316583 168 316583

Uttar Pradesh 2176 13633039 2209 13807762 2250 13978608 2285 14139098
Uttrakhand 28 84545 30 89689 44 148921 45 151421

West Bengal 502 5901925 506 5912237 511 5940511 511 5940511
N.E States
Assam 34 119652 35 126179 35 152706 36 157906
Arunachal Pradesh 1 5000 1 5000 1 5000 1 5000

Manipur 1 2175 1 2175 1 3000 1 3000

Meghalaya 4 8200 4 8200 4 8200 4 8200

Mizoram 3 3931 3 3931 3 4471 3 4471

Nagaland 2 6150 2 6150 2 6150 2 6150

Sikkim 2 2000 3 2100 2 2100 2 2100

Tripura 13 39181 14 45477 14 45477 14 45477

Union Territories
A. & N. Islands 2 210 2 210 2 210 2 210

Chandigarh 6 12216 7 12462 7 12462 7 12462

Delhi 97 129857 97 129857 97 129857 97 129857

Lakshadweep 1 15 1 15 1 15 1 15
Pudducherry 3 85 3 85 3 85 3 85

All India 6,891 31,823,701 7,091 32,729,271 7,395 34,050,359 7,543 34,673,886

Source: Doubling Farmers Income Report Volume III

45
The ground status of market reforms

The Government is trying to implement the electronic trading of agricultural commodities to

bring transparency and efficiency in agricultural marketing. The efforts are being made to
strengthen agri-logistics to build effective supply chains. However, the emphasis is required
on addressing regional constraints and address issues hindering trade through e-NAM.

Table 22: State wise progress of market reforms

State/ UT Limiting Separation Single Single Private Direct Declaring e- Deregulation
regulation of Powers unified Point Wholesale marketing warehouse, trading of marketing
within between trading levy of market (Outside silos / cold of F&V
APMC Dir(Mktg.) license Market mandi) storages, as
Yard & MD, fee deemed
Mandi market
Board
Andhra No No Yes Yes Yes Yes Yes Yes Yes
Pradesh
Arunachal Yes Yes Yes Yes Yes Yes Yes Yes Yes
Pradesh
Assam Yes Yes Yes Yes Yes Yes Yes Yes Yes
Bihar No APMC Act
Chhattisgarh No Yes Yes Yes Yes Yes No Yes Yes
Goa Yes Yes Yes Yes Yes Yes Yes Yes Yes
Gujarat Yes Yes Yes Yes Yes Yes Yes Yes Yes
Haryana No Yes Yes Yes Yes Yes Yes Yes No
HP Yes Yes Yes Yes Yes Yes Yes Yes Yes
Jharkhand No No Yes Yes Yes Yes Yes No Yes
Karnataka Yes Yes Yes Yes Yes Yes Yes Yes Yes
Kerala No APMC Act
MP No Yes Yes Yes Yes Yes No Yes Yes
Mah. No Yes Yes Yes Yes Yes No Yes Yes
Manipur No APMC Act
Meghalaya Yes Yes Yes Yes Yes Yes Yes Yes Yes
Mizoram No No Yes Yes Yes Yes No Yes No
Nagaland Yes No Yes Yes Yes Yes Yes Yes Yes
Odisha Yes Yes Yes Yes Yes Yes Yes Yes Yes
Punjab No No Yes Yes Yes Yes No Yes No
Rajasthan No Yes Yes Yes Yes Yes No Yes Yes
Sikkim No No Yes Yes Yes Yes No Yes No
Tamil Nadu No Yes Yes Yes Yes Yes Yes Yes No
Telangana No No Yes Yes Yes Yes Yes Yes No
Tripura Yes Yes Yes Yes Yes Yes Yes Yes Yes
UP No Yes Yes Yes Yes Yes Yes Yes Yes
Uttarakhand Yes Yes Yes Yes Yes Yes Yes Yes Yes
West Bengal No No Yes Yes Yes Yes No Yes Yes
Delhi No No No No No No No No Yes
Chandigarh No No Yes Yes Yes Yes No Yes No
Puducherry No No Yes Yes Yes Yes Yes Yes Yes
J&K
Laddakh
A&N Islands No APMC Act
DNH
Daman &
Diu
Lakshdeep
Source: DMI (updated on 14.07.2020)

46
 8. INSTITUTIONAL FACILITIES
8.1 Operation Green
To shield consumers from excessive price volatility in horticultural commodities like
onion, potatoes and pulses the Government of India has set up the price stabilization fund
(PSF) in 2014-15 under the aegis of Department of Agriculture, Cooperation & Famers
Welfare (DAC&FW). Initially the fund was set up with a corpus of Rs. 500 crores, for the
procurement of price sensitive horticultural commodities so as to ensure supply at reasonable
prices. Moreover, Ministry of Food Processing Industries (MOFPI) for the integrated
development of value chain of Tomato, Onion and Potato (TOP) launched Operation Greens
scheme in 2018 with the intent to augment value realization for TOP growers, assuring
significant reduction in post-harvest losses consequently ensuring price stabilization for
producer and consumers. Over the time Organizations such as NAFED, Small Farmers
Agribusiness Consortium (SFAC) have evolved so as to play a vital role in onion storage to
ensure supply during the supply shortage crisis. NAFED is the nodal agency for
implementation of short term price stabilization measures for execution of the scheme. Under
the PSF, NAFED procured and managed a buffer stock of 56000 tonnes onions in 2018-19.
Centre has procured 2.50 lakh tons of onion for the buffer in 2022-23. The onion buffer
size in current year is 0.50 lakh tons higher than the 2.0 lakh tons created during 2021-22.
The onions were procured from current rabi harvest for the price stabilisation buffer. The
stocks have been procured by National Agricultural Cooperative Marketing Federation of
India (NAFED) from farmers through the Farmer Producer Organisations (FPOs) in rabi
onion growing states of Maharashtra, Gujarat and Madhya Pradesh.

8.2 Institutional Credit Facilities

Over the time National Bank for Agriculture and Rural Development (NABARD) has
ensured several initiatives so as to ensure hassle free loans to farmers for crop cultivation.
Major initiatives include ensuring availability of agriculture credit at a reduced interest rate of
7% p.a. and interest subvention scheme for short term crop loans up to Rs. 3.00 lakh. In
addition, credit available through Kisan Credit Card (KCC), ensures timely availability of
various agricultural inputs to the farmers. The Government of India has sanctioned a capital
investment subsidy scheme for construction/ modernization/ expansion of cold storages and
storages for horticultural produce. NABARD provides refinancing to various eligible banks
for financing onion storage structures under its normal refinance programme. They issue the
guidelines from time to time in this regard.

Small Farmers Agribusiness Consortium (SFAC) encouraged the instigation of Farmer

Producer Organizations/Farmer Producer Companies (FPCs), through offering various
schemes like Equity Grant and Credit Guarantee Fund to ensure working capital and
expansion of business activities of FPOs/FPCs. It also encourages agribusiness through its
VCA Scheme for value added processing and marketing linkages.
Agricultural processed products and export development agency (APEDA) controls
and regulates the service levels, charges, terms and conditions levied upon exporters of
perishable agricultural produce by the nodal agencies, moreover it also provides advisory
services to the exporters. Directorate of Marketing and Inspection (DMI) is providing
certification of fruits and vegetables for exports through its approved laboratories stretched all
over the country to attend to grading and certification.

47
 9. PROCESSING AND UTILIZATION

9.1 Processing of Onion1

Onion can be processed into a wide range of products such as, ready to use or ready to
cook fresh onions, onion paste, dehydrated onion flakes, onion powder, onion oil, onion
vinegar, onion sauce, pickled onion, onion wine and beverage. Over the time the hectic
lifestyles and changing consumption patterns have led to an increase in demand for these
processed products. As per recent estimates, approximately 6.75% of the onion produced in
the country is used for processing.

(1) Minimally processed onions: These are peeled and/or cut onions for ready to use that
retain its freshness, packed in suitable packaging material and stored at refrigerated
conditions or frozen conditions.
(2) Onion paste: Preparation of minimally processed onions and onion paste entails
optimization of preservatives and packaging materials so as to increase their shelf life.
(3) Dehydrated onions: Dehydration of onions reduces the bulk of transport simultaneously
increasing the shelf life of onions significantly due to decreased amount of moisture, thus
limiting the growth of microorganism. Dehydrated onion flakes can be processed into
onion powder by proper grinding. Onion powder dissolves very easily and reconstitute
quickly as compared to onion flakes. Onion powder can be used to ensure the flavour of
onion in a variety of foods. Ensuring suitable packaging is most crucial to enhance the
shelf life of dehydrated onion flakes and powder since they are very hygroscopic in
nature.
(4) Pickles: Pickling is an old age practice of increasing the shelf life of food products. Most
widely used pickling for onions are vinegar based pickling and oil based pickling. While
vinegar based pickling is widespread in the United States and Europe, oil based pickling
is very popular in Asia and Africa.
(5) Oil: Onion oil is usually extracted through different methods like distillation, solvent
extraction, super critical fluid extraction etc. It is used as a flavouring substance
extensively for different processed products, besides it is also used as a natural food
preservative.
(6) Vinegar/Beverage/Sauce: Since onions are rich in sugars and other nutrients they can be
administered into onion vinegar and onion wine. Likewise, they can also be processed for
onion beverage and onion sauce.

Onion waste processing

Significant amount of onion waste is produced as a result of consumption of onion both
domestically and industrially. Onion waste includes onion skins, two outer fleshy scales and
roots generated during industrial peeling and undersized malformed or damaged bulbs. Thus
efforts are required to search for opportunities where this waste can be utilized judiciously.

(1) Source of fiber: The skin of an onion bulb contains rich fibre. After harnessing the color
from the dry skin by decoloration, the outcome product is converted into a fibrous
material which can be utilized as a fiber supplement. The same fibrous material can be
used as a thickening agent for the preparations of different soups.

1
Onion processing article by ICAR-Directorate of Onion & Garlic Research (DOGR), Pune. Retrieved
from https://dogr.icar.gov.in/index.php?option=com_content&view=article&id=53&Itemid=210&lang=en

48
(2) Natural colour: The dry skin of onion contains flavonoids. The color extracted from
onion skin can be used as a natural dye. Onion essence which is utilized as a flavoring
agent can also be extracted from the skin of an onion bulb.

(3) Bio-gas: Other resultant materials like outer layers, roots and stalks can be anaerobically
digested in a bio-digester to produce alternative energy sources like bio-gas.

9.2 Dehydrated Onions2

The main benefits of dehydrated onions are that they are easy to store, being lighter in
weight and slighter in bulk than fresh or other processed onions. Furthermore, they are cheap
to pack compared with canned goods. Also they do not require refrigerated storage. The
newest dehydration process appears to be a variation on the air-drying process and is based on
the principle of vapor pressure differentials, using air circulated around the onions at
relatively low temperatures to `sweat' the water from the food. It is reported that this method
of dehydration prevents a crust forming on the outside of the pieces of food and that the low
temperatures have less effect on flavor, texture, color and vitamin contents of onion then, of
the higher temperatures used in conventional hot air-drying methods.

Source: https://www.onionprocess.com/how-to-make-dehydrated-onion-flakes/
Red onions are not appropriate for dehydration due to low solid content, low pungency levels
and large content in reduced sugars. White onions used for dehydration are grown on a
commercial scale only in a few districts in the states of Maharashtra and Gujarat.

2
NIIR Project Consultancy Services (NPCS) project report on dehydrated onion. Retrieved from
https://www.niir.org/profile-project-reports/profile/2180/dehydrated-onions.html

49
9.3 Preparation of Onion Vadagam3

Ingredients Method
Onion 1kg
Black gram 200g 1. Soak black gram dhal in water for 2 hrs and grind
dhal into paste.
Garlic 100g 2. Peel and wash onions, make a slit in the onions.
Cumin 20g 3. Make red chillies into powder.
4. Mix onion, mustard, salt, chillies and cumin. Make
Mustard 20g
into small balls without pressure.
Chillies 100g 5. In a tray put the polythene covers and place the
Salt to taste vadagam and sun dried for 2-3 day

Source: Home Science College and Research Institute, TNAU, Madurai

9.4 Preparation of Onion Pickle 4

Items: Onions 1 kg, vinegar 1 litre, salt 250 g, red chilli powder 10 g, cardamom (large),
black pepper, cumin (powdered) each 10 g, clove (headless) 5 numbers.

Source: Home Science College and Research Institute, TNAU, Madurai

3
Web article on Post Harvest Technology : Vegetables, TNAU Agritech portal, Tamilnadu. Retrieved from
https://agritech.tnau.ac.in/postharvest/pht_rootsandtubers.html
4
Web article on Post Harvest Technology : Vegetables, TNAU Agritech portal, Tamilnadu. Retrieved from
https://agritech.tnau.ac.in/postharvest/pht_rootsandtubers.html

50
References

Agricultural and Processed Food Products Export Development Authority (APEDA). Database
Reports, GoI, New Delhi

Directorate General of Foreign Trade (DGFT), Database Reports, Ministry of Commerce and
Industry, New Delhi

Food and Agriculture Organization , FAO ( 2017). Data on major onion producing countries.
FAO, Rome, Italy. Retrieved from https://www.fao.org/faostat/en/#data/QCL

Gummagolmath, K.C. (2013). Trends in marketing and export of onion in India, Research
Report, 2012-13, National Institute of Agricultural Marketing, Jaipur, Rajasthan.

Jha, S.N., Vishwakarma, R.K., Ahmad, T., Rai, A. and Dixit, A.K., (2015). Report on
assessment of quantitative harvest and post-harvest losses of major crops and
commodities in India. All India Coordinated Research Project on Post-Harvest
Technology, ICAR-CIPHET.

Kumar, P., (2016). Price differences in wholesale prices, retail prices and price realized by
farmers for onion and grapes in Karnataka, Research Report - ADRTC/168, Agricultural
Development and Rural Transformation Centre Institute for Social and Economic Change,
Bangalore

NHRDF. Database Reports, National Horticultural Research and Development Foundation

(NHRDF), GoI, New Delhi.

National Horticulture Board (NHB). Database Reports, GoI, New Delhi

Saxena, R., and Chand, R., (2017). Understanding the recurring onion price shocks: revelations
from production-trade-price linkages, Policy Paper No 33, National Institute of
Agricultural Economics and Policy Research, New Delhi

51
Appendices

State-wise Progress of AMI (Storage Infrastructure) including Erstwhile GBY

Since inception w.e.f. 01.04.2001& up to 31.03.2022
S. No. State No. of Storage Capacity Subsidy Released
projects (in MT) (Rs. Lakh)
1 Andhra Pradesh 1444 5816670 29303.71
2 Arunachal Pradesh 1 945 6.30
3 Assam 346 1067157 6659.78
4 Bihar 1089 715539 3018.15
5 Chhattisgarh 600 1953611 7372.00
6 Goa 1 299 0.94
7 Gujarat 11970 4964855 27995.05
8 Haryana 2284 6818374 38871.69
9 Himachal Pradesh 88 30826 180.77
10 Jammu & Kashmir 15 88027 709.79
11 Jharkhand 37 183708 814.92
12 Karnataka 4674 3941516 19387.07
13 Kerala 209 105903 539.55
14 Madhya Pradesh 4617 13749757 71724.49
15 Maharashtra 3698 7035176 29225.43
16 Meghalaya 16 21012 186.75
17 Mizoram 1 302 2.52
18 Nagaland 36 32814 354.38
19 Odisha 695 1019830 4191.55
20 Punjab 1761 6814459 23516.33
21 Rajasthan 1594 3123742 10585.51
22 Tamilnadu 1202 1436730 5205.06
23 Telangana 857 5023442 25292.72
24 Tripura 5 28764 296.61
25 Uttar Pradesh 1182 5600154 18074.01
26 Uttarakhand 291 786272 3467.72
27 West Bengal 2565 1619834 5093.98
Total 41278 71979718 332076.78

52
State-wise Progress of AMI (Other than storage infrastructure) including Erstwhile AMIGS
SchemeSince inception w.e.f. 20.10.2004 & upto 31.03.2022
S. No. State No. of projects Subsidy Released
(Rs. Lakh)
1. Andhra Pradesh 379 7102.90
2. Assam 13 573.52
3. Chhattisgarh 339 6688.92
4. Delhi 1 30.41
5. Goa 1 50.00
6. Gujarat 8815 22844.76
7. Haryana 7 137.70
8. Himachal Pradesh 62 1640.18
9. Jharkhand 1 0.00
10. Karnataka 835 8975.19
11. Kerala 372 6254.84
12. Madhya Pradesh 1264 33761.78
13. Maharashtra 1568 43965.50
14. Manipur 17 0.00
15. Mizoram 1 2.52
16. Nagaland 72 1422.33
17. Odisha 20 852.13
18. Punjab 2074 26920.31
19. Rajasthan 557 9853.39
20. Sikkim 1 15.52
21. Tamil Nadu 1811 5361.95
22. Telangana 711 11489.05
23. Uttar Pradesh 3 872.00
24. Uttarakhand 7 1002.26
Total 18931 189817.16

53
Export of Onions Dried from India
Country / Region Values in Rs. Lacs Quantity in tons
2020-2021 2021-2022 2020-2021 2021-2022
GERMANY 13,027.83 13,833.24 8,992.03 9,813.18
USA 12,559.42 13,680.38 8,650.73 9,278.84
BRAZIL 11,082.00 9,346.24 8,194.83 7,338.34
INDONESIA 3,278.75 8,928.29 2,797.38 7,652.15
UK 7,598.58 8,637.66 5,324.16 6,082.12
BELGIUM 3,731.51 6,824.90 2,512.81 4,437.65
RUSSIA 6,801.63 6,355.83 4,880.78 4,824.59
SOUTH AFRICA 3,097.45 3,991.46 2,127.56 2,925.58
SLOVENIA 2,340.25 3,414.84 1,456.80 2,360.90
CANADA 2,983.95 3,077.86 1,869.05 1,869.05
NETHERLAND 2,186.11 3,044.12 1,495.15 2,267.82
POLAND 3,824.21 2,847.07 2,762.06 2,125.53
NIGERIA 2,096.29 2,798.80 1,364.47 1,834.85
COTE D' IVOIRE 1,526.42 2,739.22 874.1 1,563.50
SPAIN 3,026.86 1,938.18 2,108.09 1,392.49
TURKEY 1,553.13 1,812.82 1,160.68 1,402.83
MEXICO 1,245.31 1,633.69 930.75 1,186.38
ISRAEL 1,381.07 1,588.93 918.18 1,115.85
UKRAINE 1,588.26 1,409.35 1,038.38 953.3
Total 106,325.41 118,126.02 74811.94 84961.24
Source: Ministry of Commerce, GOI

Export of Onions Fresh or Chilled from India

Country / Region Values in Rs. Lacs Quantity in Tons
2020-2021 2021-2022 2020-2021 2021-2022
BANGLADESH PR 75,552.94 130,143.24 552,388.13 658,821.31
MALAYSIA 46,146.99 49,020.19 198,109.13 170,438.80
SRI LANKA DSR 31,322.23 41,121.15 144,713.34 162,870.66
NEPAL 16,837.61 28,077.06 114,548.77 168,475.02
U ARAB EMTS 33,050.16 27,885.12 170,641.23 122,761.34
INDONESIA 11,269.31 8,680.13 70,741.11 37,666.46
QATAR 9,335.93 7,814.89 45,354.15 33,326.29
HONG KONG 2,172.70 7,371.94 10,627.95 24,496.45
KUWAIT 8,369.06 5,745.42 39,529.51 24,219.65
VIETNAM SOC REP 4,194.59 4,679.17 25,010.94 18,093.87
PHILIPPINES 2,058.64 4,640.64 7,103.31 13,562.78
SINGAPORE 4,217.11 4,571.28 18,937.70 17,217.60
MALDIVES 3,912.50 3,747.71 11,473.06 11,490.59
BAHARAIN IS 3,410.22 3,405.54 17,153.26 14,386.80
SAUDI ARAB 10,025.78 3,381.13 57,363.62 15,154.60
OMAN 8,123.81 3,212.11 42,545.37 14,586.93
MAURITIUS 1,962.24 1,990.56 7,308.00 6,917.00
UK 1,454.18 1,684.96 5,454.15 4,879.62
Total 283,018.91 343,304.98 1579025.56 1538612.49
Source: Ministry of Commerce, GOI

54