Recently, after waiting for 19 months long, the central government removed the export fee of onion. The farmers have not yet received good results from this decision. At the same time, it was believed that onion prices would increase in the coming days and a little relief to farmers. Farmers were expected to increase the price of onion due to exports, and they would benefit them. According to experts, this year’s onion is not very good.
Bumper crop in India
Maharashtra -based onion exporter Katharani quoted Fresh Blaza.com, claiming that it is best to get onion in India after the summer crop harvest. He says that the summer crop of onion, which is a new crop from Nashik and Pune, is currently reaching the market in full range. Prices with the bumper crop this year are expected to be stable. According to them, the prices have been significantly reduced compared to the seasons of this year after the onions have been continuously reduced for years. The reason for this is sufficient supply.
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Pakistan’s onion dominates
Apart from this, Katharani said the weather is usually favorable. There is no expectation of any major problem or defect that affects the onion crop this season. For them, onion exports will be a little difficult in the coming days, as the Malaysia government can implement some traffic barrier. At the same time, prices have been reduced due to bumper crop in Pakistan, which has reduced the demand for Indian onion in major markets such as Malaysia, Sri Lanka and Gulf.
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Traffic regulations will be affected
At the same time, new import permits have not yet been issued by Indonesia, which further affects the demand. There are challenges about logistics in exporting Malaysia. The Malaysian government is going to implement new transport barriers to ETA exports by May 2025. Under this, the container load is defined as 25 metric tons. This step is expected to increase the demand for containers and increase the freight rates for export to Malaysia. Because of this, exporters may face high logistics costs.
