New Delhi: An internal note prepared by the Ministry of Consumer Affairs says that the area under onion cultivation is 0.99 lakh hectares during 2012-13 compared to 1.08 lakh hectares during 2011-12 which means there is a decline of 8.33 per cent. The figures given out in the note mention that the production of onion was 166.55 lakh tonnes during 2012-13 as compared to 175.11 lakh tonnes during 2011-12, which means that the production in 2012-13 is less than 4.89 per cent in 2011-12.
When it comes to storage, 2012-13 saw 2 lakh tonnes less compared to 29.50 lakh tonnes in 2011-12. While, the area under onion cultivation, the production and storage have all declined marginally, the export of onions for the year 2012-13 is 5.70 lakh tonnes more compared to 2011-2012.
The note further said, "It was observed that there was only 5 per cent lower production of onion during 2012-13 as compared to 2011-2012 and storage was less by only 2 lakh tonnes. But there was a sharp decline of market arrivals by around 20 to 40 per cent during June-July, 2013 as compared to 2012. It seems that the stored onion was not released to the market timely and either farmers or traders are making undue profit by creating artificial scarcity. Accordingly, prices increased almost double the level as compared to 2011-2012."
A look at the five major markets for onions in Maharashtra shows a sharp decline in arrivals for the four months between April and July when compared to 2011-2012. Solapur saw arrivals down by almost 87 per cent, with 391342 quintals in 2013 when the figure was 2984643 quintals in 2012. At Lasalgaon, the arrival in 2013 is 751833 quintals as compared to 1258995 quintals in 2012 which shows a drop of more than 40 per cent. Pune saw a drop of 34 per cent with 786916 quintals in 2013 as compared to 1199098 quintals in 2012. Pimpalgaon saw arrivals of 1060443 quintals in 2013 compared to 1458965 quintals for the corresponding four months in 2012, reflecting a drop of 27 per cent. With 270284 quintals, Manmad saw a drop of almost 48 per cent. In 2012, arrivals at the same centre were 515030 quintals. The modal price of onions for these four months has also risen sharply by 100 per cent to more than 300 per cent compared to 2012!
Gujarat registered a drop of 45 per cent with market arrivals of 255853 quintals between the months of April and July compared to 465782 quintals in 2012. Karnataka saw a drop of 27 per cent with arrivals of 1150087 quintals compared to 1575710 quintals for the corresponding period in 2012. Modal prices per quintal have also registered a steep jump.
The four major metros also saw arrivals down by 18 per cent (Chennai) to 37 per cent (Kolkata). In Delhi, the arrival in 2013 is 1051967 quintals as compared to 1272080 quintals in 2012, which means a decline by 17 per cent. Mumbai saw arrivals of 639854 quintals in 2013 as compared to 894890 quintals in 2012. In terms of percentages, that is down by 28 per cent.
With only 8-9 lakh tonnes of onions available in storage, barely sufficient to last two more months until the Kharif crop arrives, high prices are here to stay for some time.
The ministry's note does not give the reason for the sharp decline in market arrivals. But it does say that the scarcity is artificial. Along with drought in Maharashtra, floods in Karnataka, could cartelization also be one of the reasons for high onion prices?
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