
THE SCENARIO
Onion is an important commodity which is grown worldwide for culinary as well as medicinal purposes. India is the second-largest producer of onion after China. Within India, Maharashtra and Madhya Pradesh produce more than 50% of the onions. However, the bulk handling of onions is poor in India with losses of fresh onion in storage exceeding 30-35%.
Firstly, explaining the harvest cycle of the onions- 60% of the onions are harvested during Rabi season i.e. during March-April. These harvested bulbs are of superior quality and have great storage capabilities. The same crop comes in the market till September-October. However, what we see is increased prices with each passing month which are done to cover the losses during storage, done in traditional way in temporary or semi-permanent structures where onions are kept in heaps or placed in multiple levels. After this period, Kharif crops hit the market in October- November. These onions are generally smaller in size and are of low quality, hence poor at storage. But due to lesser supply than Rabi harvest, these onions still fetch better prices in the wholesale mandis.
THE ISSUES
Issues during harvesting
The supply chain includes- Cultivation, harvesting, storage, transportation, wholesale market, retail market and finally consumption. The onions are harvested during April month and are left to be cured in the field till the stems dry out. Then, stems are cut and onions are sorted based on size and quality. With primitive traditional techniques still prevalent in India, the harvesting and post-harvest phases face major losses, up to 40%. Due to poor cutting techniques and lack of training, the stem gets cut near the top of the bulb or at a premature stage and hence making it susceptible to attacks from fungus-like black moulds, bacteria and other surface injuries during storage.
Cultural and Social Issues
The storage of onions is majorly done in traditional manner. Small scale farmers store the onions in semi-permanent or temporary structure in heaps with natural ventilation or no ventilation. Many new innovative methods have been tried by farmers around India where they have introduced forced ventilation between the stacks of onions in order to increase the airflow and maintain the relative humidity which initiates dormancy. Under the Mission for Integrated Development of Horticulture, the Union Ministry of Agriculture provides grant for low cost storage structures (conventional storage structures) of 25 tonnes capacity This method of storage reduces the overall losses by 5-10% but the farmers still face losses after a month of storage. These can be further minimised by small cold storage units. Spoilage can be brought down to 2% with this shift. The ideal RH at which onions should be stored is 65-75% at 0-2 degrees C. There is a lack of knowledge about these storage methods and the science behind the crop storage, a lot of the farmers don’t apply correct storing methods and end up losing their harvest. There is also a lack of knowledge about benefits of cold storages and having interacted with many farmers myself, they believe that onion cannot be stored in cold environment. In reality, in typical cold storage with dehumidifiers and ventilation, onion can be stored at 0-2 degree Celsius for 6-8 months with losses limited to 2-3% as the onions become dormant at such low temperatures. But, due to high storage costs in cold storage and uncertainty in the market prices, the onion growers are reluctant to make changes in their operation methods and therefore the cold storage of onions has not been developed properly.


THE DEMAND-SUPPLY IMBALANCE
In India, Rabi harvest is always in surplus, which leads to imbalance in the supply-demand ratio leading to plummeting market prices, with prices going as low as 2rs/kg in the wholesale market. And with low and poor storage units available, farmers are forced to sell at lower prices. If they decide against selling at lower prices, they have to bear heavy losses up to 30-40% in the coming months due to poor storage conditions and harsh external environment – rains, high humidity and extreme weather causing a lot of damage. The onions come in contact with the oxygen in the environment and become non-dormant in nature leading to stem growth, reducing the size of the bulb. They also become unappealing during sales. Or high moisture in the air cause increase in the growth of fungus, bacteria among other deformities.
SOLUTION
The losses can be prevented with the help of government but government policies in place are not good enough. Government subsidy schemes available are in favour of constructing high volume cold storages. These are not viable for small scale farmers. The need is to provide subsidies on small scale cold storages: 10-500 tonnes which the farmers can place in their own premises.. In extra efforts, the government should develop state-owned large scale cold storages with de-humidifiers for farmers in the onion growing belts so they can use for storing their produce on rent basis. This way the demand and supply of onions can be kept in check and the farmers can reduce their losses and avail better prices for their harvest in the market.

Another issue with policymaking is the absence of a minimum selling price (MSP) assigned to the perishable and non-perishable crops. The traders take advantage of this and force farmers to sell their produce for a lower price or worse, farmers abandon their crop in the fields without harvesting as prices nosedive, becoming unviable for them. Although the government has set up a PSF- Price Stabilization fund to purchase highly volatile staples like onions during the tough period at a fixed price from farmers, it isn’t very effective because the government is unable to store the purchased onions properly (due to lack of cold storages) and face heavy losses. One such example- Madhya Pradesh government had to procure onion at Rs 800 per quintal, which was later disposed off at Rs 2-4 per quintal. In the process, the state government suffered a loss of Rs 785 crore. The government agencies purchased 57,372.90 tonnes but due to poor storage conditions, 30,672 tonnes of onion were wasted.
So, overall, for a long-term solution, the government should challenge scientific institutions to come up with cost-effective cold storage technology for the farmers and make amendments to the policies in order to teach farmers about better post-harvest management, provide subsidies to small scale cold storage units, develop better policies like MSP- minimum selling price on perishable and semi-perishable commodities like they have MSP on exports of onions to improve the drastic fluctuation in the prices of onions.
-Surbhit Godha
Vardhman Agrofresh
References
2. https://theprint.in/opinion/how-india-can-ensure-onions-are-all-through-year-at-good-price/334477/
3. https://www.icar.org.in/content/onion-cold-storage-potential-stabilize-price-fluctuation-0
4. Dr P. C. Tripathi, ONION STORAGE IN INDIA- A SURVEY REPORT, NRC Onion & Garlic Rajgurunagar, 2004, url- https://www.researchgate.net/publication/303802820_Onion_storage_in_India_-A_survey_Report-_Bulletin.
5. https://thewire.in/agriculture/onion-crisis-price-rise-storage.
6. https://economictimes.indiatimes.com/news/economy/indicators/to-rein-in-rising-inflation-government-to-set-up-a-price-stabilisation-fund-for-key-staples/articleshow/73842022.cms?from=mdr 7. https://rkvy.nic.in/Uploads/SucessStory/MAHARASHTRA/2016/2016125851Onion%20Storage%20Structure%202014-15.pdf





