Despite a slight dip in rabi-2024 onion production, the Ministry of Food assures comfortable availability in the domestic market. This year, the kharif onion cultivation target area has been increased by 27% to 3.61 lakh hectares, reflecting a significant boost in agricultural efforts.
Boost in Onion Production and Market Stability
The Ministry of Food has highlighted a promising outlook for onion availability in the domestic market, despite a marginal decrease in rabi-2024 production. The target area for kharif onion cultivation this year is set at 3.61 lakh hectares, a 27% increase from last year, demonstrating the government’s proactive approach to ensuring market stability.
According to the Ministry of Agriculture, good and timely monsoon rains have significantly benefited kharif crops, including onions, tomatoes, and potatoes. Karnataka, the leading state in kharif onion production, has completed sowing in 30% of its target area of 1.50 lakh hectares. Other major producing states are also making good progress in sowing.
Key Production Insights
Onion Production Cycles:
- Onions are harvested in three main seasons: rabi (March-May), kharif (September-November), and late kharif (January-February).
- The rabi crop constitutes approximately 70% of the total onion production, while kharif and late kharif account for the remaining 30%
Current Market Scenario:
- The current market availability of onions is primarily from the rabi-2024 crop, harvested during March-May 2024.
- The estimated rabi-2024 production is 191 lakh tonnes, which comfortably meets the domestic consumption demand of about 17 lakh tonnes per month.
- Export restrictions are maintained at 1 lakh tonnes per month to ensure domestic supply.
Storage and Market Prices:
- Dry weather conditions during and post-rabi harvest have reduced storage losses.
- Onion prices are stabilizing due to increased market release of rabi onions, combined with high mandi prices and the onset of monsoon rains which raise the risk of storage loss due to moisture.
Other Key Vegetable Productions
Potato:
- The area under kharif potato cultivation has increased by 12% from last year.
- States like Himachal Pradesh and Uttarakhand have nearly completed their targeted sowing areas, while other states, including Karnataka, are progressing well.
- The 273.2 lakh tonnes of rabi potatoes stored in cold storage are sufficient to meet demand, with prices regulating the release rate from storage.
Tomato:
- The targeted kharif tomato cultivation area this year is 2.72 lakh hectares, up from 2.67 lakh hectares last year.
- Crop conditions are favorable in major producing areas such as Chittoor in Andhra Pradesh and Kolar in Karnataka.
- Picking in Kolar has begun, and the crop will soon enter the market, with substantial improvements reported compared to last year.
The Ministry of Food’s strategic increase in kharif onion cultivation aims to mitigate any potential market instability due to lower rabi-2024 production. With favorable monsoon conditions and proactive agricultural measures, the domestic market for onions, as well as other key vegetables like potatoes and tomatoes, looks promising. Continuous monitoring and timely interventions will be crucial to maintaining price stability and ensuring adequate supply.
