banned onion exports after the imposition of a minimum export price of $800 per tonne did not serve the purpose of discouraging sales to overseas markets. Though the price of onion has eased in recent days the government is on watch to not let it increase due to the tightness in supply.
Sowing of rabi or winter onions has been 20% lower so far in January, raising concerns over adequate production. Maharashtra and Karnataka are among the country’s top producers of onion.
Patchy monsoon and dry spells lowered the kharif onion cultivation area in Maharashtra to 86,000 hectares in the 2023-24 kharif season from the previous season’s 90,000 hectares. Production is estimated to have fallen to 750,000 tonnes from 798,000 tonnes.
In Karnataka, the acreage fell to around 110,000 hectares from 145,440 hectares and production to 770,000 tonnes from the previous kharif season's 1.7 million tonnes. Overall onion production in the 2022-23 crop year is estimated to have dropped 4.7% on year to 30.2 mt.
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