INDIAN ONION EXPORT PRICES TO SOFTEN SOON

P.VIJIAN

NEW DELHI, March 17 (Bernama) -- As Indian farmers prepare for a bountiful onion harvest this summer, export prices of the commodity is expected to dip soon.

India is the second largest onion producer in the world, after close rival
China, with an annual output of nearly seven million metric tonnes and exports
of about 1.5 million metric tonnes last year. The balance is mainly consumed
locally.

"Arrivals are continuing to increase in the local markets and Maharashtra
state farmers are expecting a bumper harvest this season (April/May) mainly
because of good rainfall.

"We estimate about 1.54 million metric tonnes in output or about 300,000
metric tonnes more than last season. Export prices can easily decline by 10
percent," Maharashtra State Agricultural Marketing Board project manager D.M.
Sable told Bernama.

At present the export price of Indian onions averages between RM1,152 and
RM1,170 (US$320-US$325) per metric tonne.

Maharashtra, located in the western region of India, is a major producer and
exporter of the red-skinned onion known for its pungent smell and contributes
nearly 75 percent of India's onions exports.

Over the last six months, farmers in the state have moved away from planting
sugar cane to onions, as the price of the produce was higher in the market.

Malaysia imports nearly 80,000 tonnes of the red onions annually from India
-- ranking it as the leading buyer, besides West Asian importers.

Farmers in Gujarat, Karnataka, Rajasthan and Tamil Nadu, the other onion
producing states, are also bracing for a bumper harvest in the coming months.

--BERNAMA