Export potential analysis of onion

2011

EXPORT POTENTIAL
ANALYSIS OF ONION

Komal Fulzele
10020242009
MBA_AB
SIIB

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Table of Contents
CHAPTER 1 - GLOBAL SCENARIO ......................................................................................................... 4
Onion Production ...................................................................................................................................... 4
World Production .................................................................................................................................. 4
Onion Productivity .................................................................................................................................... 6
India's position as an exporting country for fresh Onions ........................................................................ 6
Major Importing Countries of Fresh Onions............................................................................................. 7
Importing Countries of Fresh Onions from India ..................................................................................... 8
Competitive Analysis .............................................................................................................................. 10
Importing Countries of Fresh Onions from Mexico ............................................................................... 10
Exporting Countries of Fresh Onions to India ........................................................................................ 12
CHAPTER 2 THE INDIAN SCENARIO .................................................................................................. 13
State wise Area, Production and Productivity of Onion (year 2009-2010) ............................................ 13
Varietal characteristics of commercially grown Onions ......................................................................... 14
Varietal characteristics of commercially grown Onions in Maharashtra ................................................ 15
Harvest Pattern in leading Onions Growing States ................................................................................. 16
Onion production Seasons (in Maharashtra) ........................................................................................... 17
Onion Required by Different Countries .................................................................................................. 18
Packing Specifications of some Countries .............................................................................................. 18
Process Followed before Exporting ........................................................................................................ 19
CHAPTER 3 - PROCESSED ONION PRODUCTS & MANUFACTURING PROCESS ....................... 21
Potential Processed Onion Products for Export ...................................................................................... 21
Dehydration Process ............................................................................................................................... 21
Company Profile ..................................................................................................................................... 23
CHAPTER 4 – SHORTLISTING EXPORT TARGET MARKETS ......................................................... 24
Trend in Onion Export ............................................................................................................................ 24
Price of Onions in Metros cities for year 2010 ....................................................................................... 24
The Price Trend....................................................................................................................................... 26
Major Importing Countries from India ................................................................................................... 27
Fresh Onion exports to Malaysia ............................................................................................................ 28
U.S imports of Dried & Dehydrated Onions from Selected Countries ................................................... 29
Major Destinations .................................................................................................................................. 30

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Major Competitor.................................................................................................................................... 30
Importers Directory for UNITED STATES............................................................................................ 30
CHAPTER 5- MARKETING ..................................................................................................................... 31
Chain of events which happen up to shipment of Fresh Onions ............................................................. 32
Storage Requirements of Fresh Onions .................................................................................................. 33
Product standard requirements ................................................................................................................ 33
Cost Calculation ...................................................................................................................................... 34
Sea Freight to Different Destinations...................................................................................................... 35
Cost of Production per Hectare ............................................................................................................... 35
ITC (HS) No. .......................................................................................................................................... 36
Import Tariff for Fresh Onions ............................................................................................................... 36
Import Tariffs .......................................................................................................................................... 37
Good Agricultural Practices (GAP) of Onions ....................................................................................... 38
Foreign Trade Policy............................................................................................................................... 38
Agri-Export Zones in Maharashtra and implementing agencies ............................................................. 39
Guidelines for Onion Exporters .............................................................................................................. 41
Documents required for exports of Fresh Onions ................................................................................... 41
Export Promotion .................................................................................................................................... 42
SWOT Analysis ...................................................................................................................................... 43
SWOT Analysis of Onion Processing Industry ...................................................................................... 44
Packaging and Labeling .......................................................................................................................... 45
Packaging and Labeling of Packaged Onion Products ........................................................................... 45
Reference .................................................................................................................................................... 46

List of Tables

Table 1: Total area and production of onion ................................................................................................. 4
Table 2: World Production of Onions Production (MT) ......................... 5
Table 3: Onion Productivity.......................................................................................................................... 6
Table 4: India's position as an exporting country for fresh Onions .............................................................. 7
Table 5: Major Importing Countries of Fresh Onions .................................................................................. 8
Table 6: Importing Countries of Fresh Onions from India ........................................................................... 9
Table 7: Importing Countries of Fresh Onions from Netherlands .............................................................. 10
Table 8: Importing Countries of Fresh Onions from Mexico ..................................................................... 11

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Table 9: Exporting Countries of Fresh Onions to India .............................................................................. 12
Table 10: State wise Area, Production and Productivity of Onion (year 2009-2010) ................................ 13
Table 11: Varietal characteristics of commercially grown Onions ............................................................. 14
Table 12: Varietal characteristics of commercially grown Onions in Maharashtra .................................... 15
Table 13: Harvest Pattern in leading Onions Growing States..................................................................... 16
Table 14: Onion production Seasons (in Maharashtra)............................................................................... 17
Table 15: Onion Required by Different Countries...................................................................................... 18
Table 16: Packing Specifications of some Countries .................................................................................. 19
Table 17: Price of Onions in Metros cities for year 2010 ........................................................................... 25
Table 18: Major Importing Countries from India ....................................................................................... 27
Table 19: Fresh Onion exports to Malaysia ................................................................................................ 28
Table 20: Comparison between India and Netherlands .............................................................................. 29
Table 21: Chain of events from farm to shipment ...................................................................................... 32
Table 22: Storage Requirements of Fresh Onions ...................................................................................... 33
Table 23: Product standard requirements.................................................................................................... 33
Table 24: Cost Calculation per container .................................................................................................... 34
Table 25: Sea Freight to Different Destinations ......................................................................................... 35
Table 26: ITC (HS) No. .............................................................................................................................. 36
Table 27: Import Tariff for Fresh Onions by India ..................................................................................... 36
Table 28: Import Tariffs by other countries on India .................................................................................. 37
Table 29: Good Agricultural Practices (GAP) of Onions ........................................................................... 38
Table 30: Agri-Export Zones in Maharashtra and implementing agencies ................................................ 39
Table 31: List of GLOBALGAP certification agencies in India ................................................................ 39
Table 32: Documents required for exports of Fresh Onions ....................................................................... 41

Table of Figures

Figure 1: Showing Process before exporting of onions .............................................................................. 20
Figure 2: Showing Onion Dehydration Process .......................................................................................... 22
Figure 3: Comparison between volume and value of onion exported ........................................................ 24
Figure 4: Price of Onions in Metros cities for year 2010 ............................................................................ 26
Figure 5: The Price Trend ........................................................................................................................... 26
Figure 6: Forward and Backward linkages for Onion Exports ................................................................... 31
Figure 7: Domestic and Export Marketing of Onions................................................................................. 32
Figure 8: Cost of Production per Hectare ................................................................................................... 36

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Onion (Allium cepa) belongs to the family Alliaceous. Onion is a vegetable crop consumed all
over the world but cannot be grown in abundance in every country. It is mainly grown for its
bulb which is used for consumption, flavoring and seasoning in almost every home. As an
item of world trade, onion ranks second in importance after tomatoes among the
vegetables.

In India, onion is extensively cultivated over a large area spread almost throughout the country.
It is produced for both domestic consumption as well as exports. The onions are regarded as a
highly export oriented crop and earn valuable foreign exchange for the country. Though India
produces a significant quantity of onions it is not regular and sufficient enough to meet the
demands for both domestic requirement and exports.

CHAPTER 1 - GLOBAL SCENARIO

Onion Production

World Production
Out of all the vegetable crops produced for export onion occupies 10% of total area and also in
terms of production. It is second only to potato.

Table 1: Total area and production of onion

Crop Area Production Area Production
Onion 834 13565 10.45 10.51
Total 7979 129078 100.00 100.00
Source: COMTRADE, United Nations (2008-09)

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India ranks second amongst the onion producing countries in the world in terms of area as well
as production. The first is China. India has a total of 863.5 thousand hectares of land under as of
in the year (2010-11) while the production was 20,817 thousand MT in 2008.

Table 2: World Production of Onions Production (MT)

Sr. No. Countries 2004 2005 2006 2007 2008

1 China 18,046,822 19,054,000 19,598,050 20,567,295 20,817,295

2 India 7,760,600 9,432,500 10,847,000 13,900,000 13,565,000

3 United States of America 3,767,750 3,334,070 3,249,880 3,612,300 3,407,370

4 Pakistan 1,449,025 1,764,800 2,055,700 1,816,400 2,015,200

5 Turkey 2,040,000 2,070,000 1,765,396 1,859,442 2,007,120

6 Iran (Islamic Republic of) 1,626,885 1,685,450 2,038,363 2,013,564 1,849,275

7 Egypt 895,491 1,302,125 1,119,890 1,485,933 1,728,417

8 Russian Federation 1,673,420 1,758,740 1,788,750 1,317,984 1,712,500

9 Brazil 1,157,562 1,137,684 1,345,905 1,360,300 1,367,066

10 Japan 1,128,000 1,087,000 1,161,000 1,265,000 1,271,000

11 Mexico 1,240,762 1,230,888 1,238,236 1,387,188 1,252,441

12 Netherlands 1,224,700 1,082,000 942,000 1,085,000 1,130,000

13 Republic of Korea 947,797 1,023,331 889,619 1,213,375 1,035,076

14 Spain 1,030,449 1,006,051 1,099,551 1,184,250 1,098,400

15 World 60,930,673 63,977,507 66,212,364 71470880 72,348,213

Source: United Nations, Food and Agriculture Organization, FAO Stat (2/2011)

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Onion Productivity

The highest productivity of onion is in USA (54.8 MT/ha) followed by Netherlands (43.1
MT/ha). India being a second major onion producing country in the world has a productivity of
16.26 thousand MT/ha only. India still lags behind in terms of productivity in spite of having
fertile lands and suitable climatic conditions for the production of onions.

Table 3: Onion Productivity

Countries 2008 Kg/ha

United States of 548,514
America
Netherlands 431,297

Egypt 327,147

Mexico 291,278

Turkey 267,616

China 207,929

India 162,649

Pakistan 131,626

Source: United Nations, Food and Agriculture Organization, FAOStat

India's position as an exporting country for fresh Onions

India’s onion export has made a gradual growth during the last four and half decades. In 2009
India occupied 12.35% share in total onion exports in the world. Thus being the second largest
exporting country in the world. While Netherlands ranked first with a total share of 16.46%.
Here we notice that though Netherlands is the 12th largest onion producing country but is the
largest onion exporting country in the world. This is mainly because its productivity is almost
three times that of India and its domestic consumption is much lower too as compared to India.

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Table 4: India's position as an exporting country for fresh Onions

Value in (000USD) Quantity in MT 2009

Rank Exporting Country Qty Value Share(%)

1 Netherlands 8,61,217.00 3,14,012.00 16.46

2 India 7,93,935.00 2,35,525.00 12.35

3 Mexico 2,45,630.00 2,24,898.00 11.79

4 Egypt 2,78,579.00 1,41,739.00 7.43

5 China 3,40,876.00 1,20,241.00 6.30

6 Spain 2,64,160.00 1,07,754.00 5.65

7 USA 2,35,897.00 1,05,268.00 5.52

8 France 1,22,024.00 72,633.00 3.81

9 New Zealand 1,20,064.00 63,088.00 3.31

10 Argentina 2,09,410.00 62,925.00 3.30

Source: COMTRADE, United Nations

Major Importing Countries of Fresh Onions

USA is the major onion importing country followed by UK, Malaysia, Germany, and Russian
Federation. Though US ranks first in terms of Productivity but its production is not sufficient
enough to support its population. As a result it imports its major demand for onions. Thus US
and UK are the main target markets for Indian onion exports which is still not explored.

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Table 5: Major Importing Countries of Fresh Onions

2009
Sr No. Country Qty Value
1 USA 3,09,151.00 241.00
2 United Kingdom 3,58,255.00 175.00
3 Malaysia 4,56,111.00 133.00
4 Germany 2,31,691.00 121.00
5 Russian Federation 3,77,281.00 118.00
6 Saudi Arabia 2,71,414.00 116.00
7 Canada 1,62,267.00 100.00
8 Japan 2,07,976.00 85.00
9 Pakistan 3,24,182.00 81.00
10 Belgium 1,44,770.00 71.00
11 Netherlands 1,26,777.00 70.00
12 France 1,10,673.00 61.00
13 Sri Lanka 1,59,510.00 50.00
14 Brazil 1,78,233.00 43.00
15 Italy 76,850.00 32.00
Total 47,72,631.00 1,903.00
Source : COMTRADE, United Nations

Importing Countries of Fresh Onions from India

The major countries to which India exports onions are Malaysia, Pakistan, Sri Lanka, Singapore
and Nepal. From the table below it is observed that Indian exports are concentrated to the
SAARC and geographically nearby countries only. US, UK and Japan being the major markets
for onion imports, India does not export to them. Hence there is a need to increase the exports to
these countries by adapting to the quality standards and varietal requirements by such countries.

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Table 6: Importing Countries of Fresh Onions from India

Quantity in MT 2007 2008 2009
Value in US$ 2006
Mill.
Sr Country Qty Value Qty Value Qty Value Qty Value
No.
1 Malaysia 2,58,251. 53 1,79,804 55. 2,87,432. 75. 3,22,510 92
2 Pakistan 77,998 19 13,622 3.00 17,331 4.00 2,18,177 69
3 Sri Lanka 1,29,306. 22 1,48,535 44.00 1,68,136 45.00 1,47,436 46
4 Singapore 22,942 4 18,311 6.00 25,507 6.00 27,140 8
5 Nepal 0.00 0.00 0.00 0.00 0.00 0.00 48,565 6
6 Mauritius 11,797 3.00 11,311 5.00 10,553 4.00 11,688 6
7 France 4,364.00 1.00 4,283 2.00 5,814.00 2.00 5,548.00 3.00
8 China, 75.00 0.00 0.00 0.00 28.00 0.00 5,262.00 3.00
Hong
Kong Sar
9 Italy 194.00 0.00 576.00 0.00 4,880.00 2.00 1,849.00 1.00
10 Bhutan 0.00 0.00 0.00 0.00 1,946.00 0.00 2,014.00 1.00
11 United 588.00 0.00 925.00 0.00 2,015.00 1.00 2,044.00 1.00
Kingdom
12 Greece 4,919.00 1.00 1,012.00 0.00 1,958.00 1.00 0.00 0.00
13 Oman 8,532.00 2.00 12,486.00 9.00 15,817.00 6.00 0.00 0.00
14 Philippines 0.00 0.00 435.00 0.00 35,238.00 4.00 0.00 0.00
16 Qatar 26,118.00 5.00 22,199.00 5.00 31,264.00 7.00 0.00 0.00
18 Saudi 27,617.00 5.00 27,719.00 7.00 0.00 0.00 0.00 0.00
Arabia
20 Seychelles 0.00 0.00 0.00 0.00 1,261.00 1.00 0.00 0.00

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Competitive Analysis

Netherlands is the main competitor for India. It exports to the major importing markets of US,
UK and Russian Federation. It is ahead of India both in terms of volume and value of exports.
The conditions in favor of Netherlands are its low population density along with lower domestic
consumption, proximity to the major markets of onion, its productivity and climatic conditions.
The conditions in favor of India are its large fertile lands under onion production. climatic
conditions which lead to all year round production of onions and there is vast scope for
increasing the productivity, production and hence the exports of onion from the country.

Table 7: Importing Countries of Fresh Onions from Netherlands

2006 2007 2008 2009

Sr Country Qty Value Qty Value Qty Value Qty Value
No.
1 United 1,16,427 59 1,22,799 79 1,31,971 72 1,48,010 62
Kingdom
2 Belgium 72,808 31 82,047 41 88,748 39 80,959 34

3 Russian 2,10,506 51 86,207 28 1,14,520 40 83,809 33
Federation
4 Germany 62,187 28 55,014 37 55,457 33 59,677 28

5 France 35,601 16 46,487 28 44,528 22 45,726 18


Importing Countries of Fresh Onions from Mexico

Indian share in world onion exports is 12% and that of Mexico is 11%. Hence it qualifies as a
close contender to Indian onion exports. Its exports have been increasing over the years. Mexico
too exports to the major onion importing countries. This is mainly due to proximity to these
nations. And hence India needs to keep a check on its contenders.

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Table 8: Importing Countries of Fresh Onions from Mexico

Quantity in 2006 2007 2008 2009
MT
Value in US$
Mill.
Sr Country Qty Valu Qty Valu Qty Valu Qty Valu
No e e e e
.
1 USA 1,55,845. 127.0 2,12,942. 183.0 3,38,876. 188.0 1,86,952. 174.0
00 0 00 0 00 0 00 0
2 Canada 53,754.00 21.00 20,584.00 26.00 19,785.00 26.00 22,126.00 27.00
3 United 3,976.00 4.00 6,474.00 11.00 7,295.00 13.00 6,273.00 13.00
Kingdom

4 Ireland 1,640.00 2.00 1,725.00 3.00 1,547.00 2.00 1,612.00 4.00

5 Italy 0.00 0.00 25.00 0.00 1,273.00 1.00 4,186.00 3.00

6 Guatemal 6,761.00 1.00 9,670.00 1.00 9,635.00 1.00 15,920.00 2.00
a
7 El 11,231.00 1.00 8,846.00 1.00 7,413.00 1.00 6,206.00 1.00
Salvador

8 Netherlan 516.00 0.00 0.00 0.00 203.00 0.00 1,009.00 1.00
ds
Source: COMTRADE, United Nations

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Exporting Countries of Fresh Onions to India

Though India is self-sufficient in terms of onion production and sufficing its domestic
consumption sometimes due to bad climate and lower production it has to import onions. In last
five years India had to import only once in year 2009 due to slump in onion production. It
imported majorly from Spain, Netherlands and Pakistan. A total quantity of 830 MT. was
imported

Table 9: Exporting Countries of Fresh Onions to India

Quantity in MT 2009

Sr No. Country Qty

1 Spain 15.00

2 Netherlands 88.00

3 Pakistan 312.00

Total 830.00


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CHAPTER 2 THE INDIAN SCENARIO

State wise Area, Production and Productivity of Onion (year 2009-2010)

India has the largest area of about 4 lakh ha(20% of world area) followed by China about 3 lakh
ha. But the production is the highest in China (48 lakh MT) as against India (44 lakh MT). Out of
total annual production of about 60 lakh tonnes of country, about 16 lakh tonnes are produced in
Maharashtra alone.

Maharashtra ranks first in terms of area, production as well as productivity. Out of total annual
production of about 60 lakh tonnes of country, about 16 lakh tonnes are produced in Maharashtra
alone. The onions produced in the Nasik region of Maharashtra are in major demand for its
strong pungency and longer shelf-life. Other major onion producing states are UP and Gujarat.
Gujarat is a recent entry into the onion producing states and has almost the equivalent
productivity as that of Maharashtra. It is showing good signs of progress in terms of onion
production.

Table 10: State wise Area, Production and Productivity of Onion (year 2009-2010)

No. State Area Production(' 000 tons MT) Productivity
(' 000 ha) ( tons/ ha)

1. Andhra Pradesh 26.00 244.00 9.38

2. Bihar 28.75 329.88 11.47

3. Gujarat 35.50 750.00 21.13

4. Karnataka 53.00 395.00 7.45

5. Madhya Pradesh 39.55 517.35 13.08

6. Maharashtra 111.65 2409.18 21.58

7. Orissa 60.45 522.47 8.64

8. Rajasthan 37.75 570.00 15.10

9. Tamilnadu 30.50 320.50 10.51

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10. Uttar Pradesh 69.50 778.75 11.21

11. Haryana 16.00 329.00 20.56

12. Other 45.50 563.00 12.37

Total 554.15 7729.13

Source: NAFED Report

Varietal characteristics of commercially grown Onions

The main varieties grown for export are Agrifound Dark Red which has a good productivity,
Agrifound Light Red and Agrifound Rose(Scarlet red) are good storer varieties, Agrifound
Rose(Brick red) and Arad (H) (yellow) which can be usefully exploited for the major markets of
US, UK and Japan as these require yellow onions with lesser pungency.

Table 11: Varietal characteristics of commercially grown Onions

Variety Colour Shape Maturity TSS Productivity Remarks
(%) ( q / ha )
Agrifound Dark red Global 90-100 days 12-13 300-400 Medium
Dark Red round, from storer
medium to transplanting
big
Agrifound Light red Global 120 days 13-14 300-325 Good
Light Red round, from storer
medium to transplanting
big,
compact ,
outer scale
tight
Agrifound Scarlet red Flatish 95-110 days 16-18 190-200 Good
Rose round, 2.5- from sowing storer

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3.5 cm
diameter
Agrifound Brick red 5-6 66-67 days 15-17 180-200 Good
Rose bulblets/ from sowing storer
clump,
bulblet of
2-2.5 cm
size
Arad (H) Yellow Big-sized 90-100 days 9-10 500—800 Poor storer
global after
round transplanting
bulbs of 6-
8 cm
diameter

Varietal characteristics of commercially grown Onions in Maharashtra

Phule Safed and Baswant-780 are the major varieties grown and exported. Phule Safed apart
from being grown all year round is good for dehydration purpose as well for processed onion
products.

Table 12: Varietal characteristics of commercially grown Onions in Maharashtra

No Variety Season Colour Remarks
1 N-53 Kharif Red Poor Storage
2 Baswant-780 Kharif Red Poor Storage
3 N2-4-1 Rabi Brick-Red Good Storage
4 N-257-9-1 Rabi White Good Storage
5 Phule Safed All year White Good for Dehydration
6 Phule Suvarna Late Kharif /Rabi Yellow Red Good for export to

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Europe
7 AFDR Late Kharif /Rabi Dark Red Fairly Good for Storage
8 AFLR Rabi Light Red Good Storage

Harvest Pattern in leading Onions Growing States

From the table it is clear that India has year round production of onions due to which along with
satisfying its domestic consumption demand it can also export throughout the year.

Table 13: Harvest Pattern in leading Onions Growing States

State Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec

Maharas Lean Lean Lean Peak Peak Lean Lean Peak Lean
htra seas seas seas seas seas seas seas seas seas
on on on on on on on on on

Gujarat Lean Peak Lean Lean Lean Lean Lean Peak Lean
seas seas seas seas seas seas seas seas seas

Bihar Lean Peak Lean
seas seas seas
on on on

Karnatak Lean Lean Lean Peak Peak Peak
a seas seas seas seas seas seas
on on on on on on

Andhra Lean Peak Peak Lean Lean Peak Peak Peak Lean
Pradesh seas seas seas seas seas seas seas seas seas

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Madhya Lean Peak Lean Lean
Pradesh seas seas seas seas
on on on on

Rajastha Lean Peak Lean Lean Lean Lean
n seas seas seas seas seas seas
on on on on on on

Haryana Lean Peak Lean Lean Lean Lean
seas seas seas seas seas seas
on on on on on on

Uttar Lean Peak Peak Peak Lean Lean Lean
Pradesh seas seas seas seas seas seas seas
on on on on on on on


Onion production Seasons (in Maharashtra)

Major production of onions takes place in Rabi / Winter season. This comes to harvest in
February to March. This onion produced in summer (Rabi season) is suitable for export. About
50% to 60 % of onion produced in the State is of export quality.

Table 14: Onion production Seasons (in Maharashtra)

No Season Growing Harvest Storage Quality Remarks
Months months
1 Kharif /Rainy June-August August- Poor (1 month) 10 %
September
2 Late Kharif September- November- Poor (1 month) 30-40 %
(Rangda) November December
3 Rabi /Winter (Pol December- February- Good (4-6 50-60 %

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/Unhali) February March month)
Source: DIRECTORATE OF ECONOMICS AND STATISTICS,NEW DELHI (2008-09)

Onion Required by Different Countries

The requirement of onion size is different by different countries. The European and Japanese
markets require large onions of 60-70mm of yellow colour. The Middle East and Gulf countries
require onions of middle sizes (40 – 60mm) while SAARC and other south-east Asian countries
require onions of small sizes (25 – 30mm).

Table 15: Onion Required by Different Countries

S.No. Country Size(mm)
1 Middle East and Gulf(Dubai, Sharjah, Doha, Muscat, 40 – 60
Bahrain, Dammam, Saudi Arabia, Kuwait)
2 Malaysia, Singapore, Port Kelang & African Ports 25 – 30
3 Sri Lanka 25 – 30
4 Bangladesh, Pakistan & Nepal 25 – 30
5 Europe 60 – 70
6 Japan 60 – 70
Source: MSAMB, Pune(2008)

Packing Specifications of some Countries

Onions are needed to be packed in netted poly bags before exporting. These bags are produced as
per the country requirement. Onions are exported in the range of 5kg bags to 25kg bags
depending on the country to which it is exported.

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Table 16: Packing Specifications of some Countries

S.No Importing nation Pack size
1 Malaysia and Indonesia 10 kg

2 Srilanka 25 Kg

3 Singapore 8 Kg

4 Philippines 20 Kg

5 Gulf countries 5 Kg, 10 Kg, 15 Kg and 20 Kg
Source: NIAM, Jaipur(2008)

Process Followed before Exporting

1. Grading-
The onions brought from farm/ warehouse to the auction shed are first manually or
machine graded.
2. Filling in netted poly bags and Weighing-
The graded onions are then filled in the poly bags. For example a 20kg poly bag is always
filled to 18.3-18.5kgs only. And this is assured by weighing before sealing the bags.
3. Loading in the container-
Then these filled and properly weighed poly bags are loaded in the container and are then
ready for export.

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Figure 1: Showing Process before exporting of onions

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CHAPTER 3 - PROCESSED ONION PRODUCTS & MANUFACTURING PROCESS

It is Rs 500-crore onion dehydration industry in India. Globally, India holds about 50 per cent
market share in the dehydration business. India has about 95 active onion dehydration units, of
which 70 are located in Gujarat, including Bhavnagar, Mahuva, Vadodara and Gondal. The
country has about 30 export oriented units (EOUs) of dehydrated onion products. Major export
destinations include Europe, Russia, France and America, where annually around 60,000 tonnes
of dehydrated onion products are shipped.

Potential Processed Onion Products for Export

1. Dehydrated onions- fried kibbled (These are chopped and dried onions, and are ideal
for sausage and burger making)
2. Kibbled
3. Minced
4. Toasted kibbled
5. Fried kibbled (white onion)
6. Granules
7. Powder
8. Minced (white onion)

Dehydration Process

1. Pilling & then washing with medicated water-
2. Cutting through conveyer Belt
3. Onion Chips loaded on Stainless steel Dryer Belts
4. Binary Dryers to further reduce Moisture Content
5. huller machine to grade the material by size i.e. flakes, powder, chips etc.
6. The final product is then passed through Auto Sortex
7. Metal Detector to ensure desired quality product
8. sealed in air tight bags to preserve it properly

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Figure 2: Showing Onion Dehydration Process

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Company Profile

Company- Chhatariya Veg Expo Pvt. Ltd.-

It is one of the main exporting companies of processed onions.

Location- Mahuva in the state of Gujarat

Main export products-

Dehydrated Red and White Onions in various forms like slices, flakes, kibbled, chopped,
minced, granules and powder.

Exports-

Germany, France, Netherlands, Spain, Canada, USA, South Africa and other European
countries.

Production-

1200 MT per annum of dehydrated Onions.

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CHAPTER 4 – SHORTLISTING EXPORT TARGET MARKETS

Trend in Onion Export

In the last twenty years the Indian onion exports by volume has multiplied by almost six times
but the volume for the same has multiplied by seven and a half times. Thus we see that the
demand and price quoted for Indian onions have increased over the years. This can be mainly
contributed to the hybrid varieties which has not only increased the production but productivity
of onions over the years. Ongoing research to produce less pungent yellow onions to be exported
to European nations and Japan will further increase the Indian exports in coming years.

Comparison between Volume and value of onion exported
2008p

2006

2004

2002

2000
Year

1998

1996

1994

1992
Exports…
1990
0 500000 1000000 1500000 2000000
Metric Tons

Figure 3: Comparison between volume and value of onion exported

Price of Onions in Metros cities for year 2010

The price of onions fluctuates in every season or it can be said that it fluctuates every month. The
price offered also differs from region to region. This can be seen from the following graph. The
price is lowest in the month of April which was received at Bangalore while highest in the month
of November at Kolkata. The price directly depends on the production and availability of onions.
Onion is classified as an essential commodity under Essential Commodities act, hence whenever

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the production is low and prices are running high the government imposes ban on onion exports.
This greatly hampers the onion exports and exporters incur great losses during this time. Also the
MSP levied sometimes takes away the exporters edge in the international market. For example
the Indian government had fixed the minimum export price (MEP) for onions at USD 475 a
tonne after lifting a ban on exports on September 20 but the onions from China and Pakistan,
which were selling at USD 300 per tonne and USD 325/tonne, respectively, in international
markets, rendered the Indian produce uncompetitive.

Table 17: Price of Onions in Metros cities for year 2010

Price(RS/Qtl)

City Bangalore Delhi Kolkata Mumbai

Jan 1130.86 1393.23 1753.02 1364.27

Feb 1009.53 1204.84 1614.88 1026.37

Mar 629.39 836.68 693.37 741.92

Apr 498.96 680.9 733.93 643.29

May 552.51 539.55 650.3

Jun 629.28 581.01 910.03 729.84

Jul 658.36 739.5 936.34 757.65

Aug 880.51 809.79 1215.05 865.99

Sep 1291.61 1281.48 1742.13 1383.07

Oct 1359.02 1451.9 2100.26 1613.62

Nov 1850.24 1505.8 2673.2 2398.26

(Source: http://dacnet.nic.in)

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9000
8000
7000
6000
Price Rs/Qtl

5000 Mumbay
4000 Kolkata
3000 Delhi
2000 Bangalore
1000
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Months

Figure 4: Price of Onions in Metros cities for year 2010

The Price Trend

While in Table it can be clearly seen that onion has started getting better price in the recent
years. This has been contributed to the increasing demand of Indian onions overseas.

Figure 5: The Price Trend

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Source:- Ministry of Consumer Affairs - http://fcamin.nic.in

Major Importing Countries from India

The major destination of fresh onions from India is Malaysia. Indian onions occupy about 70%
of Malaysian markets. Some years before the Malaysian and Gulf countries were totally
occupied by Indian onions but from last 4-5 years onions from Netherlands, Pakistan and China
can be seen. These countries are leveraging on the competitive pricing, low cost of transport due
to geographical nearness and bulk cargo.

Table 18: Major Importing Countries from India

2007 2008 2009
2006

Sr
Country Qty Value Qty Value Qty Value Qty Value
No.

1 Malaysia 2,58,251.00 53.00 1,79,804.00 55.00 2,87,432.00 75.00 3,22,510.00 92.00

2 Pakistan 77,998.00 19.00 13,622.00 3.00 17,331.00 4.00 2,18,177.00 69.00

3 Sri Lanka 1,29,306.00 22.00 1,48,535.00 44.00 1,68,136.00 45.00 1,47,436.00 46.00

4 Singapore 22,942.00 4.00 18,311.00 6.00 25,507.00 6.00 27,140.00 8.00

5 Nepal 0.00 0.00 0.00 0.00 0.00 0.00 48,565.00 6.00

6 Mauritius 11,797.00 3.00 11,311.00 5.00 10,553.00 4.00 11,688.00 6.00

7 France 4,364.00 1.00 4,283.00 2.00 5,814.00 2.00 5,548.00 3.00

China, Hong
8 75.00 0.00 0.00 0.00 28.00 0.00 5,262.00 3.00
Kong Sar

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9 Italy 194.00 0.00 576.00 0.00 4,880.00 2.00 1,849.00 1.00

10 Bhutan 0.00 0.00 0.00 0.00 1,946.00 0.00 2,014.00 1.00

United
11 588.00 0.00 925.00 0.00 2,015.00 1.00 2,044.00 1.00
Kingdom

12 Greece 4,919.00 1.00 1,012.00 0.00 1,958.00 1.00 0.00 0.00

13 Oman 8,532.00 2.00 12,486.00 9.00 15,817.00 6.00 0.00 0.00

14 Philippines 0.00 0.00 435.00 0.00 35,238.00 4.00 0.00 0.00

16 Qatar 26,118.00 5.00 22,199.00 5.00 31,264.00 7.00 0.00 0.00

18 Saudi Arabia 27,617.00 5.00 27,719.00 7.00 0.00 0.00 0.00 0.00

20 Seychelles 0.00 0.00 0.00 0.00 1,261.00 1.00 0.00 0.00

Fresh Onion exports to Malaysia

The comparison between Indian Exports and other countries exports is shown as below.

Table 19: Fresh Onion exports to Malaysia

Country Qty Value Percentage

Malaysia 4,56,111.00 133 100

India 3,22,510.00 92 70

Other Countries 133601 41 30

Source: United Nations, Food and Agriculture Organization, FAOStat (2/2011)

The nearest competitor as of now is Netherlands. But in future India can expect stiff competition
from China and Pakistan as well. These countries have started aggressive marketing of their
produce in the Malaysian and Gulf markets.

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Table 20: Comparison between India and Netherlands

Years 2006 2007 2008 2009

India 2,58,251.00 1,79,804.00 2,87,432.00 3,22,510.00

Netherlands 83,987.00 90,666.00 37,521.00 50,919.00


U.S imports of Dried & Dehydrated Onions from Selected Countries

India is a close competitor of China for processed onion products in US market value wise.
While volume wise the largest exporter of processed onions is Mexico. But its exports are
intermittent. While India has been a regular exporter to the US. The exports are high when there
is good production of onions in India and suffer loss of market in the hands of China when it is
low.

Value: USD

Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Mexic 1,300,43
7,457 4,689 15,979 21,353 466,555 643,780
o 6

1,271,75 1,578,12 1,621,15 2,155,94 2,416,58 2,231,60 2,979,69 3,145,14 2,711,85
China 583,216
0 7 1 9 0 1 8 8 7

1,238,99 3,140,68 1,644,81 3,935,68 3,056,34 1,734,73
India 339,935 705,626 779,124 416,995
2 3 5 1 9 8

1,002,13 1,589,87 1,385,35
Egypt 20,900 24,525 57,510 376,339 274,566 613,804
0 7 6

2,005,73 2,386,46 2,095,65 3,787,25 6,559,39 4,172,33 7,995,73 8,435,15 7,132,38
Total 923,151
3 5 6 9 3 5 8 4 7

Worl 1,143,71 2,411,98 3,060,39 3,276,85 5,038,08 7,235,18 4,734,85 9,047,97 9,308,92 8,984,10
d 2 1 0 5 8 6 7 0 6 7


30
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Major Destinations

Thus the major markets shortlisted for onion export having potential for further expansion are
Malaysia foe fresh onions and US for processed onions.

Major Competitor

The major competitors classified are Netherlands for fresh onions in Malaysian market while
China and Mexico for processed onions in US market.

Importers Directory for UNITED STATES

Some of the major importers of processed onion products from India in US are as follows. The
list of such other importers can be found and they can be contacted on the APEADA website as
well for those who want to export.

4 R Inc
All Things Sicilian
American Ag Products
Ben-bud Growers, Inc
Bloomington Wholesale Garden Supply
Global Traders, Inc
Inversiones Mejia
Source- http://agriexchange.apeda.gov.in

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CHAPTER 5- MARKETING

For the development of market of onions abroad the following steps are needed to be taken.
Strengthening the backend along with the frontend is equally important. Backward integration
can be achieved by forming farmer’s co-operatives, use of certified and hybrid seeds, R&D for
developing new varieties according to demands in other potential importing countries.
Developing infrastructure for proper storage, onion irradiation and value addition to get better
price in the international market is needed.

The regulatory policy and quality standards needs to be revamped in such a way that it will
further increase the exports. New markets need to be explored, promotional activities in these
markets needs to be undertaken. Branding of the products needs to done.

Figure 6: Forward and Backward linkages for Onion Exports

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The domestic as well as the export marketing channels have many intermediaries in between.
This can be seen from following figure.

Figure 7: Domestic and Export Marketing of Onions

Chain of events which happen up to shipment of Fresh Onions

Following are the activities which are undertaken farm to shipping yard. This has been already
covered.

Table 21: Chain of events from farm to shipment
Sr. Guidelines
No.
1 Transported to Packhouse
2 Unloading
3 Sorting & Grading
4 Packed in netted poly bag sizes

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5 Precooling
6 Cold storage
7 Palletizing
8 Refrigerated trucks
9 Shipment
(Source: NAFED Report)

Storage Requirements of Fresh Onions

The storage requirements of fresh onions while in the transit is shown in the following table.

Table 22: Storage Requirements of Fresh Onions

Sr. Relative Storage
Temperature Freezing Point Description
No. Humidity Period

1 0o C 65-70% 3-5 months low --
temperature.


Product standard requirements

The product standards required for exports and during the consignment tolerance is as follows-

Table 23: Product standard requirements

Sr. Grade
Grade tolerances
No. designation

1 Extra class 5% by number or weight of onion not satisfying the requirements of the
grade, but meeting those of class I grade or, exceptionally, coming within
the tolerances of

2 Class I 10% by number or weight of onion not satisfying the requirements of the
grade, but meeting those of class II grade or, exceptionally, coming within
the tolerances of that grade.

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3 Class II 10% by number or weight of onion not satisfying the requirements of the
grade but meeting the minimum requirements.

Cost Calculation

The cost calculation from harvest to pack house to port is as follows. The total cost of filling a
40’ container with onion nylon bags comes to about Rs.54485 or Rs.2.17/kg.

Table 24: Cost Calculation per container

Cost estimates for exports of onions from India (as per information
collected during 2008)

(a) Procurement price*:

Approx. price (Rs. /kg) : 3.0

*Price of onion varies according to variety, month of procurement

(b) Charges for treatment, packing, transport, etc.(below in table):

Table 9.14: Charges for treatment, packing, transport, etc.

40’ container (25000
Particulars
kg)

Nylon Bag (Capacity: 20Kg) Rs. 8/- per bag 8100

Cost of loading & unloading 5000

Cost of pallets 2500

Local transportation 17000

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Container Transportation(JNPT - Vashi - JNPT) 7000

Terminal Handling Charges 14885

Total 54485 or Rs. 2.17/kg

Source: MSAMB, Maharashtra, NAFED Report

Sea Freight to Different Destinations

The freight charges vary if using a 20’ or a 40’ container. It is preferable if 40’ containers are
used because the cost can be greatly reduced to half the times if compared to using two 20’
containers in place of one 40’ container. It varies from year to year /season to season, capacity of
container and distance covered.

Table 25: Sea Freight to Different Destinations

(c) Sea freight charges ( in USD)
Freight rates for reefer container are as follows:
Reefer containers 20’ 40’
Dubai/Doha 1100 1600
Kuala Lampur/Singapore 600 900
UK/Amsterdam 1700 2700
Freight rates for ordinary container are as follows:
Dubai/Doha 600 900
Kuala Lampur/Singapore 100 175
Flaxo (UK)/Amsterdam 900 1450
http://www.msamb.com/english/export/globalgap.htm

Cost of Production per Hectare

The cost of production of onion comes to around Rs.54, 000 per ha. The onion crop requires less
application of pest control as it is a hardy crop. The overall cost of production is very less as
compared to other cash crops. This is an advantage for producers as well as exporters

36
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Figure 8: Cost of Production per Hectare
http://www.jains.com/PDF/crop/cultivation%20of%20white%20onion.pdf

ITC (HS) No.

The ITC (HS) codes for different forms of onions are different. The code varies if the onion is
fresh onion or dried and processed or is used as a seed for onion production.

Table 26: ITC (HS) No.

No. Type
07031010 Onions, shallots
07122000 Dried onions, whole, cut, sliced, broken or in powder, but not further prepared
12099130 Onion Seeds, fruit and spores, of a kind used for sowing
http://dgft.org

Import Tariff for Fresh Onions

The import tariff imposed by Indian Government is shown in the following table.

Table 27: Import Tariff for Fresh Onions by India

Country name India

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Product Onions

[AVG]-FBD 100.9

[Duty Free in %]-FBD 0

[Max]-FBD 150

[Binding in %]-FBD 100

[AVG]-MFN 31.5

[Duty Free in %]-MFN 0

[Max]-MFN 105

[Share in %]-Imp 1.1

[Duty Free in %]-Imp 0

Source: WTO.org

Import Tariffs

The import tariff imposed by countries on the import of onions from India is as follows.

Table 28: Import Tariffs by other countries on India

[Duty [Duty [Duty
[Binding [Share
Country [AVG]- Free in [Max]- [AVG]- Free in [Max]- Free in
Product in %]- in %]-
name FBD %]- FBD MFN %]- MFN %]-
FBD Imp
FBD MFN Imp

European
ONIONS 10.7 22.6 199 100 11.8 21.4 195 1.3 16.1
Union

United
ONIONS 4.8 23.7 132 100 5 23.2 132 1.2 24.6
States

Malaysia ONIONS 151.1 11.8 0 100 3.8 63.9 80 0.6 81.1

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Sri Lanka ONIONS 50.4 0 66 100 24 0.5 60 1.4 2.5

Bangladesh ONIONS 191.2 0 200 100 20.2 4.2 25 0 0

Good Agricultural Practices (GAP) of Onions

Some good agricultural practices to be followed in case of onions are use of hybrid seeds, proper
nutrient and water management, plant protection and weed management.

Table 29: Good Agricultural Practices (GAP) of Onions

Sr. No. Good Agricultural Practices (GAP)

1 Use of hybrid seeds

2 Nutrient and water management

3 Plant protection

4 Weed management


Foreign Trade Policy

For the agriculture sector there are various schemes to give impetus to onion exports. Some of
them provided by FTP are as follows

A new scheme called "Vishesh Krishi Upaj Yojana (Special Agricultural Produce Scheme)" to
boost exports of fruits, vegetables, flowers, minor forest produce and their value added products
has been introduced. Under the scheme, exports of these products qualify for duty free credit
entitlement (5 per cent of Free On Board (fob) value of exports) for importing inputs and other
goods

Duty free import of capital goods under Export Promotion Capital Goods (EPCG) scheme,
permitting the installation of capital goods imported under EPCG for agriculture anywhere in the
Agri- Export Zone (AEZ)

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Utilizing funds from the 'Assistance to States for Infrastructure Development of Exports
(ASIDE) scheme' for development of AEZs

Liberalization of import of seeds, bulbs, tubers and planting material, and liberalization of the
export of plant portions, derivatives and extracts to promote export of medicinal plants and
herbal products.

Agri-Export Zones in Maharashtra and implementing agencies

Various AEZ’s have come up for giving stimulus to onion exports and processing units. The
scheme of AEZ is implemented by the Ministry of Commerce, GoI, through APEDA (the
Agriculture and Processed Food Export Development Authority), New Delhi – the nodal agency
for AEZ.

Table 30: Agri-Export Zones in Maharashtra and implementing agencies

Sr. AEZ MOU Signed Districts

Nodal Agency

1. Onion 16th Jan. 2003 Nasik, Pune, Ahmednagar, Jalgaon, Satara, Solapur.


List of GLOBALGAP certification agencies in India

The following are the certifying agencies for GLOBALGAP certificates. Here the exporters have
to apply.

Table 31: List of GLOBALGAP certification agencies in India

Name of the Address & Contact Contact Person & Email
Certification Number Address
Agency
Control Union Summer Ville, 8th Floor, 33rd-14th Road Mr. Sanjay Sailas,
Certifications Junction, Khar (W), Mumbai-400 052, Sr. Inspector
India Email: sailas@controlunion.com
Tel: +91-22-67255390/91/92/93 cuc@controlunion.in,
Fax: +91-22-67255394/95 ssl@controlunion.in
Website: www.controlunion.com

40
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ECOCERT Sector - 3, S-6/3 &4, Gut No. 102, Dr. Selvam Daniel
India Hindustan Awas, Country Representative and
Walmi – Waluj Road,Nakshatrawadi – Director Certification
431 002. Operations-India
Aurangabad.,Maharashtra State, India. Email: office.india@ecocert.com
Telefax: +91-240-2377120, 2376949. ecocert@sancharnet.in
Website: www.ecocert.in
EUROCERT Plot No 372, Phase I, Industrial Area Ravinder Kakkar
INDIA 134113 Panchkula agri@iclcertifications.com
Tel: 172580467, 572900 Fax: 172
569849
Website: www.eurocert1.com
FoodCert India 3-6-157 Himayatnagar, 4th floor Victory Srihari Kotela
(p) Ltd Vihar Appartments 500 029 Hyderabad srihari@foodcertindia.com
Tel: + 91 40 66256146, 23221393
Fax: + 91 40 66256145
www.foodcertindia.com
IMO No. 26, 17th Main, HAL A II Stage Umesh Chandrasekhar
CONTROL 560008 Bangalore Tel: +91 80-52 01 546 imoind@vsnl.com
(Pvt.) Ltd. Fax: +91 80-52 72 185
www.imocontrol.net
INDOCERT Head Office: Mr. Mathew Sebastian,
Thottumgham P.O,Aluva, emakulam Executive Director
Dist.,Kerala - 683 105,Tel: 0484 262943, info@indocert.org
2630908,Liaison Office:
M/s. Indocert,Flat No. 3, Saket
Aparments,Manekshanagar, Near Kathe
Galli,Dwarka, Nashik,Maharashtra -
422011,Ph:02532502213
SGS India Pvt. 2nd Floor, Ridhi-Sidhi App., Near Mr. Swapnil kadam
Ltd. Agarwal Petrol Pump, Sanjivani Nagar Email:
Ozar (mig), tal: Niphad nashik-422206 Swapnil_Kadam@sgs.com
Tel: +91-2550329887 nasik_sgs@sgs.com
Fax: +91-2550274913
www.sgs.com
TUV SUD Off Saki Vihar Road, Saki naka, Andheri Mr. Mahesh Deshpande
South Asia (E), Mumbai – 400 072 Email:
Tel:+91-22-3082 3082/9797 Mahesh.Deshpande@tuv.sud.in
Fax: +91-22-3082 9595
www.tuv-sud.in

41
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Guidelines for Onion Exporters

MSAMB is the exclusive canalizing agency for the state of Maharashtra. Here the persons have
to register who want to undertake onion exports. The following steps have to be undertaken by
him.

1. Registration

2. Fixation of minimum export price (MEP)

No objection certificate (NOC)

Service charges: 1 % on invoice value.

5. Refund of service charges - if shipment is not effected owing to reasons beyond control of
associate shippers

6. Research and development fund- @ rs.20/- per metric ton while applying for the quota. This
fund will be utilized for the purpose of research and development of production, quality, storage,
handling etc., Of export oriented agricultural commodities, particularly onion by national
horticultural research and development foundation (NHRDF), Nasik.

Extension of validity - grace period of 7 days

8. Documentation

Documents required for exports of Fresh Onions

Table 32: Documents required for exports of Fresh Onions

Document
Document Document Documents s Related
Sr. Document Organic
s Related s Related Related To To Foreign Other
No s Related Certificatio
To To Quality Of Exchange Documents
. To Goods n
Shipment Payment Goods Regulation
s

1 Invoice Mate Letter Of Phytosanitary Certificate GR Form: Bank
Receipt Credit Certificate Indicating Document Realization
(L/C) Material s Required Certificatio
Produce Is By RBI n (BRC):
Based On Which This Is The
Organic Assures Advice

42
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Farming. To RBI Given By
That The Foreign
Exporter Exchange
Will Bank After
Realize The
The Realization
Proceeds Of Money
Of Goods From
Within Importer.
180 Days
From The
Date Of
Shipment.

2 Packing Shipping Bill Of GLOBALGA
List Bill Exchange P
Certification

3 Certificate Bill Of Health
Of Origin Handing Certificate

4 Airway
Bill

Export Promotion

Mainly done by MSAMB is as follows.

 Commercial & trial export
 Implementation of subsidy scheme for GlobalGAP certification
 Erection and successful utilization of Export Facility Centers for various commodities in
the state
 Participation in various International Commodity Specific Promotion Programs
 Implementation of Agri Export Zones of Onion
 Organizing Farmers’ Foreign Study Tours.

43
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SWOT Analysis

Strengths

 Moderately diverse climate permits onion production almost all over the country barring
few coastal pockets.
 Development of diverse genotypes.
 Good scope for expanding area in non-traditional areas.
 Wide variability of germplasm is available for breeders for crop improvement.
 Marginal and small farmers share maximum percent of peasantry in India, onion
cultivation is more suitable to them as they have higher cost benefit ratio than cereals.
 Availability of cheap labour.
 Being short duration crops in nature, these crops can fit into any cropping system and
juvenile orchards.
 Onions have got strong processing traits and attract good agro-based industries.
 Onions have got old and strong export tradition.
 Availability of trained scientific manpower and good inter-institutional collaboration.

Weaknesses

 Poor seed multiplication programme of released varieties.
 Inferior local genotypes still dominate 70 percent of onion production.
 Most of the available genotypes have low productivity and are highly susceptible to pests
and diseases.
 Lack of hybrids in short day onion.
 Lack of availability of yellow onion varieties with mild pungency having consumer
acceptance for export to European Union.
 Lack of varieties for processing.
 Inadequate extension services.
 Very high fluctuations in market prices, which affect cropping production plan.
 Lack of sound export policy.
 Poor infrastructure for storage and transport of perishable export commodities.
 Inadequate database for area, production and diseases incidence etc.

Threats

 Genetic erosion of local genotypes due to released varieties.

44
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 Vagaries of monsoon like untimely rains/drought lead to outbreak of diseases/pests.
 International competition for export of onion from neighboring countries.
 Introduction of hybrids by multinationals under OGL without proper testing is likely to
introduce new diseases and pests.
 Increasing soil and water salinity will limit the productivity.

Opportunities

 Extension of onion cultivation in non-traditional areas.
 Promotion of export of onion to European countries.
 Expansion of processing industries will demand production of more onion.
 Promotion of export of onion seed.

SWOT Analysis of Onion Processing Industry

Strength

1. Round the year availability of Onions.

2. Support from the central Government.

3. Competitive manufacturing facilities available.

4. Increasing overseas market and demand.

Weakness

1. High requirement of working capital

2. Low availability of new reliable and better equipment’s and machinery

3. Inadequate automation w.r.t. information management.

4. Remuneration less attractive for talent in comparison to contemporary disciplines.

5. Inadequately developed linkages between R&D labs and industry.

Opportunity

1. Large crop and material base in the country due to agro-ecological variability offers vast
potential for agro processing activities.

2. Opening of global markets may lead to export of our developed technologies and facilitate
generation of additional income and employment opportunities.

45
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Threats

1. Competition from global players

2. Loss of trained manpower to other industries and other professions due to better working
conditions prevailing there lead to further shortage of manpower.

3. Government Policies.

Packaging and Labeling of Fresh Onions

 Name and complete address of the importer in India.
 Generic or common name of the commodity packed.
 Net quantity using standard units of weights and measures. If the net quantity of the
imported package is given in
 Any other unit, its equivalent terms of standard units shall be declared by the importer.
 Month and year in which the commodity was manufactured/packed, or imported.
 The Maximum Retail Price (MRP) at which the commodity, in packaged form, may be
sold to the ultimate
 Consumer. This price shall include all taxes, local or otherwise,
 freight, transport charges, commission payable to
 dealers, and all charges towards advertising, delivery,
 Packing, forwarding, and any other relevant charges.


Packaging and Labeling of Packaged Onion Products

 The PFA requires that every package of food shall carry the following information on the
label
 The trade name or description of the food item
 List of ingredients, except for single ingredient foods
 Net content by weight, volume or number; drained weight (for food packed in liquid
medium)
 Distinctive lot number or code number or batch number
 Date, month, and year of manufacturing or packing.
 Best before date
 Instructions for use
 Maximum Retail Price (MRP)
 Name and complete address of the manufacturer

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Reference
1. DIRECTORATE OF ECONOMICS AND STATISTICS,NEW DELHI (2008-09)
2. COMTRADE, United Nations
3. United Nations, Food and Agriculture Organization, FAOStat
4. MSAMB, Pune(2008)
5. NIAM, Jaipur(2008)
6. NAFED Report
7. http://agriexchange.apeda.gov.in
8. Ministry of Consumer Affairs - http://fcamin.nic.in
9. http://dacnet.nic.in
10. http://www.jains.com/PDF/crop/cultivation%20of%20white%20onion.pdf
11. http://www.msamb.com/english/export/globalgap.htm
12. http://dgft.org
13. WTO.org
14. http://business.gov.in/trade/foreign_trade.php
15. http://www.msamb.com/english/export/globalgap.htm
16. http://dgftcom.nic.in/exim/2000/not/not00/not4400.htm

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