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Published 03 Nov, 2014 06:47am

Decline in onion prices

THE new onion crop has started reaching the market over the last few days, but farmers complain they are not getting the right price for their produce.

Those who had harvested their crop earlier last month or during the last week of September did get a better price, ranging between Rs3,000-3,200 for a 105kg-110kg bag. With the crop’s arrival in full swing, the price has now dropped to as low as Rs1,660.

Earlier on, a vehicle usually loaded with 120 bags was being sold for Rs350,000-400,000. Now the price varies between Rs200,000-250,000. Normally, at the outset of the crop season, farmers get a somewhat better price, but when supplies improve, prices tend to fall. After deducting the cost of production — which works out at Rs35,000-40,000 per acre — farmers complain their margin of profit is getting squeezed.


Unfortunately, Sindh has not been able to harness its full onion production potential, largely due to the low priority given to research for developing new seed varieties


An onion grower from Tando Allahyar, Abdul Aziz Memon, says his crop is ready for harvest but the price level is disappointing. After deducting the cost of production of around Rs40,000, he would get Rs19,000 per acre. And this, too, has to be shared with his peasants.

Somewhat attractive prices earlier last month were due to higher demand during Eid-ul-Azha, when onion consumption had increased and the crop’s harvesting had not picked up.

A Hyderabad-based exporter, Abdul Jabbar, agreed that onion prices were going down in the market. Last year’s price was relatively better. Jabbar believed that the current price level will help the prospect of exports to Malaysia, Bangladesh and Dubai.

Sindh’s share in the country’s onion production is 38.4pc and Punjab’s 19pc, according to the ministry of national food security and research’s agriculture statistics for 2011-12.

The onion crop is harvested in different areas between September and January due to early or late sowing and harvesting. Sindh’s onion is preferred for its flavour and quality.

Unfortunately, the province has not been able to harness its full potential of onion production largely due to the low priority given to research for developing new seed varieties, say officials and progressive growers. Not only this, but even Sindh’s famous ‘phulkara’ variety has now been registered in Punjab.

Sindh got its ‘nasarpuri’ variety approved from the Provincial Seed Council (PSC) after purifying it in 2012, according to Agriculture Research Director General Dr Atta Soomro. Some initiatives aimed at overcoming post-harvest losses are in the pipeline under the Sindh Agriculture Growth Project, which is being funded by the World Bank.

Mahmood Nawaz Shah, a progressive farmer, deplores the pre- and post-harvest losses, which contribute to huge onion wastage. Sindh’s onion export price remains below par when compared with India’s. “Our crop is sold at $60-70, less than Indian’s export price, only because of lack of value-addition. We are unable to control sprouting yet.”

Published in Dawn, Economic & Business, November 3rd, 2014

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