Growth and export performance of Onion in India: An economic analysis

Abstract

The present study is conducted in a view to study the growth performance of onion in India. For this the secondary data on area, production and productivity of onion in major onion growing states of India and export of onion from India over the years were collected. The growth rate technique and instability index were employed to analyze. The data collected from 2006-07 to 2017-18. The results revealed that Gujarat recorded negative and significant growth rates of -6.11, -6.28 and -0.18 per cent per annum in area, production and productivity of onion respectively. Rajasthan exhibited high variability in area (43.30), production (46.70) and productivity (36.76). Quantity of onion production in India exhibited a positive growth rate of 6.34 per cent per annum and was statistically non-significant at five per cent level of significance. Quantity of onion production in India has shown variability of (24.33%), Quantity of onion exports registered a growth rate of 3.14 per cent per annum and in terms of value 9.09 per cent per annum which is non-significant. With reference to the variability of onion exports, the value of onion exports exhibited a highest variability (35.01 per cent) than that of quantity (25.22 per cent). The positive growth rate in quantity of onion production attributed to increase in area under the onion cultivation coupled with use of improved cultivars and with increase in demand for India’s onions in the international market. The variability in exports and value of exports is due to high fluctuations in the domestic prices whenever the scarcity is felt.