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A tearful year for onions; foodgrains market withstands shocks, remains stable

Onion, an essential ingredient in the cooking pot for the Indian housewife, rolled like a juggernaut onto the political battlefield during 1998, proving the point that availability of essentials remains the first priority on the minds of the masses.

During the year, foodgrain stocks remained stable on substantial buffer of rice and wheat, following satisfactory procurement operations and augmentation through imports.

However, foodgrain production declined by three per cent or six million tonnes to drop to 193.12 million tonnes. Although rice production touched a new high of 82.1 million tonnes, it fell short of the 83 million tonne target. Wheat output was at 66.1 million tonnes, again much below the year's target of 68.5 million tonnes.

But it was the onion that brought tears to all, in more senses than one. Maharashtra leads the production of onions in the country. The main producing and marketing centre, Lasalgaon in Nashik district, accounts for half the output of the state. The state produces around 1.2 million tonnes of onions in three seasons, (rabi, kharif and summer) in a total cultivating area of 60,000 hectares.

During 1998, unseasonal rains damaged around 15 per cent of the estimated 400,000 tonne output of onions in Nashik district. The crop suffered serious damage in other parts of the state also.

The resulting shortage led to onion prices rising to Rs 1,676 per quintal at the Lasalgaon wholesale market. The commodity was selling at a very high premium in cities and towns across the country.

In a belated decision, the central government banned the export of onions. The announcement was met by protests from the traders lobby.

In another move, the Maharashtra government imported large quantities of onions from Iran and the middle east to augment the supplies. The National Agricultural Federation also imported 10,000 tonnes of onions for sale across the country.

The Maharashtra government channelised higher quantity of onion supply through its public distribution system. The onions were supplied under the PDS from November 1-23.

All these measures helped ease the situation to an extent, as prices of onions are ruling lower at Rs 700-900 in the market during December. According to sources at the Agriculture Produce Market Committee in New Bombay, daily arrival of onions is around 95 trucks carrying 950 tonnes.

The fall in prices forced the state government to halt the supply through PDS and put on hold plans of further imports. APMC sources said supply has stabilised with arrivals from interior parts of the state particularly Nashik, Nagar, Hubli, Chandavad and Manmad.

These developments may have brought relief to the common man, but the farmers are not smiling. Piqued over the continuation of government policy of not allowing onion exports, cultivators are on the warpath. The Nashik-based Shetkari Mazdoor Sangathana is observing a bandh in Lasalgaon on January 5 against the policy.

SMS leader Laxman Pagar claims that onion prices are ruling at an abysmally low rate of Rs 104 in the Lasalgaon market. The Sangathana says that production cost of onions has tripled, resulting in heavy losses to farmers.

According to official sources, onion output during the fiscal year 1998-99 is expected to go up to 4.45 million tonnes as compared to 3.68 million tonnes the previous year.

Among other crops, coarse cereals (jowar, bajra, maize, ragi, small millets and barley) and pulses turned out to be discouraging. Output of coarse cereals fell by 2.68 million tonnes to post 31.6 million tonnes. Pulses production was 13.35 million tonnes against the target of 15 million tonnes and previous year's output of 14.46 million tonnes.

Rice exports fared better than the previous year, but far below the potential offered by the boom conditions in the world market, where the demand rose by 20 per cent to a record 25 million tonnes. During the calendar year, rice exports were around 3 million tonnes, a 20 per cent rise over the previous year's 2.5 million tonnes.

The ban on wheat exports continues while imports remain unabated. The central government's recent announcement of open market sale of four million tonnes of wheat through the state governments has generated lukewarm response.

The foodgrain stock position in the Central pool was 24.94 million tonnes comprising 13.73 million tonnes of wheat stock and 11.22 million tonnes of rice.

The government has estimated that for 1998-99, the kharif foodgrains crop would be at 101 million tonnes, almost the same as the previous year's levels.

UNI

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