ONIONS: EXPORTS CONTINUE TO GROW

By: G. Palaniappan S. Subramaniam ONIONS: EXPORTS CONTINUE TO GROW India is the second largest producer of onions in the world, next only to China. And since only a few countries produce onions, while the whole world consumes it, India s exports of the vegetable have maintained steady growth over the past four decades. The onion is one of the oldest vegetables known to mankind and is used in an array of recipes and preparations. However, it s rarely eaten on its own and is usually an accompaniment to the main course. Depending on the variety, an onion can be tangy and pungent or mild and sweet. Consumers in the countries that import onion have traditionally developed a special taste for the Nashik (Maharastra) onion due to its pungency, flavour and colour. The variety of uses The onion is a vegetable native to South Asia, and has been widely used in Indian cuisine. Archaeological and literary evidence suggests cultivation probably took place in ancient Egypt, at the same time that leeks and garlic were cultivated. Workers who built the Egyptian pyramids may have been fed radishes and onions. The onion is easily propagated, transported and stored. The Ancient Egyptians worshipped it, believing that its spherical shape and concentric rings symbolized eternal life. Onions were even used in Egyptian burials as evidenced by onion traces being found in the eye sockets of Ramesses IV. It was believed that if buried with the dead, the strong scent of onions would bring breath back to the dead. In ancient Greece, athletes ate large quantities of onion because it was believed that it would lighten the balance of blood. Roman gladiators were rubbed down with onion to firm up their muscles. The onion was introduced to North America by Christopher Columbus in his 1492 expedition to Hispaniola. Onions were also prescribed by doctors in the early 1500s to help with infertility in women. Onions pickled in vinegar are eaten as a snack. These are often

served as a side serving in fish and chip shops throughout the United Kingdom. Onions are widely used in India, and are fundamental to Indian cooking. They are commonly used as a base for curries, or made into a paste and eaten as a main course or as a side dish. Tissue from onions is frequently used in science education to demonstrate microscope usage, because they have particularly large cells which are readily observed even at low magnifications. Medicinal properties and health benefits Wide-ranging claims have been made for the effectiveness of onions against conditions ranging from the common cold to heart disease, diabetes, osteoporosis, and other diseases. They contain chemical compounds believed to have anti-inflammatory, anticholesterol, anticancer, and antioxidant properties. However, it has not been conclusively demonstrated that increased consumption of onions is directly linked to health benefits. Some studies have shown that increased consumption of onions reduces the risk of head and neck cancers. In India, some sects don t eat onion due to its aphrodisiac properties. Onions are low in calories yet add abundant flavour to a wide variety of foods. With only 30 calories per serving, onions are sodium-, fat-, and cholesterol-free and provide dietary fibre, vitamin C, vitamin B6, potassium, and other key nutrients. Onions possess very good nutritive and medicinal values; the nutritive ingredients of onion are given in Table I (quantities per 100 gm). In many parts of the world, onions are used to heal blisters and boils. A traditional Maltese remedy for sea urchin wounds is to tie half a baked onion to the afflicted area overnight. In the morning, the spikes will be Table I Nutritional Value of Raw Onions Nutritional name Value (100 g) Carbohydrates 9.34 Sugars 4.24 Dietary fibre 1.70 Fat 0.10 Protein 1.10 Water 89.11 Source: USDA Nutrient Database Table II Top 10 Countries that Produce Onions (2007-08) Country Production ( 000 tonnes) China 10,235 India 6,525 United States 3,346 Turkey 2,364 Pakistan 1,764 Russia 1,758 South Korea 1,750 Japan 1,690 Egypt 1,652 Spain 1,049 World total 74,198 Source: UN Food & Agriculture Organisation (FAO) in the onion. In the United States, products that contain onion extract are used in the treatment of topical scars; some studies have found their action to be ineffective, while others found that they may act as an antiinflammatory or bacteriostatic and can improve collagen organisation in rabbits. Onions may be especially beneficial for women, who are at increased risk for osteoporosis as they go through menopause, by destroying osteoclasts so that they do not break down bone. An American chemist has stated that the pleiomeric chemicals in onions have the potential to alleviate or prevent a sore throat. Market Survey Onions and eye irritation As onions are sliced, cells are broken, allowing enzymes called alienates to break down amino acid sulphoxides and generate sulphenic acids. Sulphenic acids are unstable and spontaneously rearrange into a volatile gas called syn-propanethial- S-oxide. The gas diffuses through the air and eventually reaches the eye, where it reacts with the water to form a diluted solution of sulphuric acid. This acid irritates the nerve endings in the eye, making them sting. Tear glands produce tears to dilute and flush out the irritant. Supplying ample water to the reaction while peeling onions prevents the gas from reaching the eyes. Eye irritation can, therefore, be avoided by cutting onions under running water or submerged in a basin of water. Rinsing the onion and leaving it wet while chopping may also be effective. Another way to avoid irritation is by not cutting off the root of the onion, or by doing it last, as the root of the onion has a higher concentration of enzymes. Using a sharp blade to chop onions will limit the cell damage and the release of enzymes that drive the irritation response. Chilling or freezing onions prevents the enzymes from activating, limiting the amount of gas generated. The volume of sulfenic acids released, and the irritation effect, differs among Allium species. On January 31, 2008, the New Zealand Crop and Food institute created a strain of no tears onions by using gene-silencing biotechnology. Propagation Onions may be grown from seed or, more commonly today, from sets started from seed the previous year. Onion sets are produced by sowing seed very thickly one year, resulting in stunted plants that produce very small bulbs. These bulbs are very

Table III Area, Production and Yield of Onion in India Year Area Production Yield (million hectares) (million tonnes) (kg/hectare) 1990-91 0.30 3.23 10,686 1991-92 0.32 3.58 11,088 1992-93 0.32 3.49 10,791 1993-94 0.37 4.01 10,902 1994-95 0.38 4.04 10,661 1995-96 0.40 4.08 10,316 1996-97 0.40 4.18 10,348 1997-98 0.40 3.62 9,091 1998-99 0.47 5.33 11,391 1999-2000 0.49 4.90 9,932 2000-01 0.42 4.55 10,786 2001-02 0.45 4.83 10,686 2002-03 0.42 4.21 9,912 2003-04 0.50 5.92 11,784 2004-05 0.55 6.43 11,718 2005-06 0.59 6.92 11,982 2006-07 0.66 8.68 13,118 2007-08 0.58 7.16 12,357 Source: Agriculture Statistics, Ministry of Agriculture in India easy to set out and grow into mature bulbs the following year, but they have the reputation of producing a less durable bulb than onions grown directly from seed and thinned. Seed-bearing onions are daylength sensitive; their bulbs begin growing only after the number of daylight hours has surpassed some minimal quantity. Most traditional European onions are what is referred to as long-day onions, producing bulbs only after 15+ hours of daylight occur. Southern European and North African varieties are often known as intermediate day types, requiring only 12-13 hours of daylight to stimulate bulb formation. Finally, short-day onions, which have been developed in more recent times, are planted in mild-winter areas in the fall and form bulbs in the early spring, requiring only 9-10 hours of sunlight to stimulate bulb formation. Either planting method may be used to produce spring onions or green onions, which are the leaves and/or immature plants. Varieties of onions Bulb onions. Grown from seed (or onion sets), bulb onions range from the pungent varieties used for dried soups and onion powder, to the mild and sweet onions, such as the Vidalia from Georgia or Walla Walla from Washington that can be sliced and eaten on a sandwich instead of meat. Multiplier onions. These are raised from bulbs that produce multiple shoots, each of which forms a bulb. Potato onions. These are shaped like a potato. Tree onions or Egyptian onions. These produce bulblets in the flower head and are a hybrid of Allium cepas. Welsh onions or green onions. Green onion is a name also used to refer to another species, Allium fistulosum or the Welsh onion, which is said not to produce dry bulbs. Shallots and ten other onion (Allium cepa L.) varieties commonly available in the United States are: Western Yellow, Northern Red, New York Bold, Western White, Peruvian Sweet, Empire Sweet, Mexico, Texas 1015, Imperial Valley Sweet, and Vidalia. In general, the most pungent onions deliver many times the benefits of their milder cousins. World onion production scenario World onion production is estimated at approximately 105 billion pounds each year. The average annual onion consumption is approximately 13.67 pounds of onions per person across the world. Libya has the highest consumption of onions with an astounding average per capita consumption of 66.8 pounds. At least 175 countries grow onions. According to the United Nations Food and Agriculture Organisation, there are an estimated 6.7 million acres of land under onion cultivation in the world, producing 105 billion pounds of onions each year. Approximately 8 percent of this global onion production is traded internationally. Leading onion production countries are China, India, United States, Turkey and Pakistan, as can be seen from Table II. Onion production in India Onion, a major ingredient in Indian food, and a politically-sensitive commodity, is typically cultivated thrice a year; in monsoon, winter and summer. The onion harvested during October-December is Kharif crop, during January-March is Rangada crop, and in April-May is called Rabi or Unhal Crop. All three crops are available for export, with Rabi having the longer shelf life. Thus export from the Nashik region is possible throughout the year. The area under onion cultivation in the ongoing Kharif season is expected to increase by 16.36 per cent to 1.17 lakh hectares from 1 lakh hectares in 2007-08. The onion output is estimated to rise by 19.77 per cent to 15.78 lakh tons in kharif 2007-08 compared to 13.17 lakh tons in the year 2006-07. India, the world s second largest producer of onions, is likely to have 527,719 hectares under the crop in

Table IV State-wise Area, Production and Yield of Onion in India During 2006-07 and 2007-08 (area in 000 hectares, production in 000 tonnes, yield in kg/hectare) State 2007-08 2006-07 Area Per cent Production Per cent Yield Area Per cent Production Per cent Yield to total to total to total to total Gujarat 76.0 13.1 2,128.0 29.73 28,000 76.0 11.48 2,128.0 24.51 13,949 Maharashtra 109.0 18.8 1,112.0 15.53 10,202 177.0 26.74 2,469.0 28.44 28,000 Karnataka 151.0 26.1 845.0 11.80 5,596 151.0 22.81 870.0 10.02 5,762 Andhra Pradesh 31.0 5.4 579.0 8.09 18,677 36.0 5.44 696.0 8.02 19,333 Madhya Pradesh 36.2 6.2 617.4 8.62 17,055 37.8 5.71 572.0 6.59 15,132 Rajasthan 38.6 6.7 370.3 5.17 9,593 44.5 6.72 427.2 4.92 9,600 Haryana 16.4 2.8 314.9 4.40 19,201 15.5 2.34 317.7 3.66 20,497 Uttar Pradesh 21.0 3.6 297.0 4.15 14,143 25.5 3.85 328.2 3.78 12,871 Orissa 28.5 4.9 260.0 3.63 9,123 26.8 4.05 243.9 2.81 9,101 Tamil Nadu 29.6 5.1 258.3 3.61 8,726 29.2 4.41 233.8 2.69 8,007 Others 42.0 7.3 376.5 5.26 42.6 6.44 396.8 4.57 Total 579.3 100.0 7,158.4 100.00 12,357 661.9 100.00 8,682.6 100.00 13,118 Source: Agricultural Statistics, Indian Horticulture Database, National Horticulture Board, Gurgaon, India 2007-08, up from the previous year s 478,440 hectares. India produced a record 6.66 million tonnes in 2006-07. The area under onions rose 10.3 per cent mainly due to rise in acreage in Maharashtra, Gujarat and Madhya Pradesh. Farmers got good returns in 2006-07, and therefore they increased the area under onion cultivation; availability of seeds also helped. India produces around 40 lakh metric tons (mts) of onion annually and has doubled its production during the past two decades. The yield per hectare has, however, remained static at 10.5 metric tons per hectare. That means the rise in production has been due to more area coming under onion cultivation. Earnings from onion production have also increased over the years. Table III reveals that the share of Maharashtra in the production of onions is around 30 per cent of the country s output, with around 12 lakh metric tons produced annually in recent years. In Maharashtra, Nashik district contributes 35 to 40 per cent of the state s production. The other major onion producing districts of Maharashtra are Pune, Ahmednagar, Satara, Sholapur and Dhulia. Export of onions from India India s onion exports have made a gradual growth during the last four-and-a-half decades. In 1951-52, India exported a quantity of 56,986 metric tons valued at Rs 0.67 crores. Exports crossed the half million metric ton mark for the first time in 1996-97, going up to 5.15 lakh metric tons valued at Rs 332.27 crores an increase by nine times over the past 45 years. The export realisation was at an all time record at Rs 7108 per metric tons during 1995-96. Although onions are consumed in all the countries of the world, they are cultivated only in some countries. Area under onion cultivation in the world is about 20 lakh hectares. India has the largest area of about 4 lakh hectares (20 per cent) followed by China at about 3 lakh hectares. But the production is the highest in China (48 lakh MT) as against India (44 lakh MT) due to higher productivity in China (16 MT/ha compared to India s 14 MT/ha). In India, of the four lakh hectares of area under onion, the maximum area of about 95,000 hactares (about 24 per cent) is in Maharashtra. Other important states are Karnataka, Orissa, U.P., Andhra Pradesh, Rajasthan, M.P., Tamil Nadu, Bihar and Gujarat. During the last 10 years, onion production has increased with some ups and down. By and large, there is an increase in production with annual growth rate of 3.59 per cent. However, exports have increased at a faster rate with an annual growth rate of 7.64 per cent. The share of exports in onion production has also increased from about 7 per cent in 1988-89 to about 14 per cent in 2003-04. Onion is the pride of India s agricultural exports and earns valuable foreign exchange for the country. Of the total fresh vegetable exports, the share of onion is 67 per cent. The value of onion exports has increased from Rs. 162.56 crores in 1992-93 to Rs 295 crores in 1997-98. However,

there was some decline in exports to Rs 176 crores in 1998-99 due to a reduction in production in the previous year (1997-98). NAFED s role The National Agricultural Cooperative Marketing Federation of India Ltd (NAFED), located in New Delhi, was set up in October 1958 to provide market support to agricultural producers. This support is provided by NAFED through various state level marketing federations, primary agricultural marketing societies and the National Cooperative Development Corporation. NAFED ventured into onion exports as far back as 1965, when small consignments were exported to Sri Lanka. Due to NAFED s increasing role in this trade, the government of India canalised onion exports to Malaysia and Singapore during 1974, and to all destinations during 1975. Since then the canalisation of the export of onions, under which it regulates the price and the quality of the product, has remained with NAFED. Under this scheme, NAFED has been exporting onions on its own account, as well as streamlining exports of Green onions Table V Export of Onions from India Year Production Exports Exports as per cent (lakh MT) (lakh MT) of production 1997-98 40.8 4.70 11.52 1998-99 41.8 4.83 11.56 1999-2000 36.2 4.96 13.70 2001-02 53.3 6.27 11.76 2002-03 49.0 5.28 10.78 2003-04 45.5 6.57 14.44 2004-05 48.3 7.53 15.59 2005-06 42.1 6.90 16.39 2006-07 59.2 7.69 12.99 2007-08 64.3 7.03 10.93 Source: Export Statistics for Agro and Food Products, India onion through associate shippers. In order to provide marketing support to producers and to ensure a better price to them, and also to maintain the availability of the commodities in the domestic market at reasonable prices, NAFED undertakes internal trade in agricultural commodities, especially food grains, pulses, oilseeds, cotton, jute, spices, fruits, vegetables and eggs. NAFED also engages in external trade and exports a variety of agricultural commodities. In fact, the exports of agricultural commodities through the cooperative system in India developed only after NAFED came into existence. As a part of its external trade activities, NAFED also undertakes imports of agricultural commodities as and when requested by the government. NAFED is responsible for providing marketing support to producers and to ensure that they receive a remunerative price for their product. It also undertakes support price purchases of various commodities for the government. Procurement prices of onion are decided by NAFED on the basis of the cost of production, and procurement is initiated in the markets and from the farmers directly. A National Horticultural Research Development Foundation (NHRDF) has been set up by NAFED to undertake research on development of varieties of onion suitable for cultivation in different agro-climatic regions of the country as well as the development of suitable production practices. One important role played by NAFED is to intervene in the market when onion prices crash to unreasonable levels. Onion has now become a cash crop, which is in demand in export markets as well as in India throughout the year. The qualitative and quantitative improvement in both production and marketing over the years has established onion cultivation as a safe source of earning to farmers, and to internal traders and exporters. The authors are lecturers in Commerce at Anbu Arts and Science College, Komarapalayam, Namakkal District, Tamil Nadu