Export potential analysis of onion

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The document describes the global and Indian scenario for export of onion. It includes the different types of processed onion products and its manufacturing process. The forward and backward integration for marketing of onions along with the guidelines for onion exporters is also covered.

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Export potential analysis of onion

  1. 1. 2011 EXPORT POTENTIAL ANALYSIS OF ONION Komal Fulzele 10020242009 MBA_AB SIIB
  2. 2. 1SIIB MBA_ABTable of ContentsCHAPTER 1 - GLOBAL SCENARIO ......................................................................................................... 4 Onion Production ...................................................................................................................................... 4 World Production .................................................................................................................................. 4 Onion Productivity .................................................................................................................................... 6 Indias 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 ........................................................................................ 12CHAPTER 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 ........................................................................................................ 19CHAPTER 3 - PROCESSED ONION PRODUCTS & MANUFACTURING PROCESS ....................... 21 Potential Processed Onion Products for Export ...................................................................................... 21 Dehydration Process ............................................................................................................................... 21 Company Profile ..................................................................................................................................... 23CHAPTER 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
  3. 3. 2SIIB MBA_AB Major Competitor.................................................................................................................................... 30 Importers Directory for UNITED STATES............................................................................................ 30CHAPTER 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 ........................................................................... 45Reference .................................................................................................................................................... 46 List of TablesTable 1: Total area and production of onion ................................................................................................. 4Table 2: World Production of Onions Production (MT) ......................... 5Table 3: Onion Productivity.......................................................................................................................... 6Table 4: Indias position as an exporting country for fresh Onions .............................................................. 7Table 5: Major Importing Countries of Fresh Onions .................................................................................. 8Table 6: Importing Countries of Fresh Onions from India ........................................................................... 9Table 7: Importing Countries of Fresh Onions from Netherlands .............................................................. 10Table 8: Importing Countries of Fresh Onions from Mexico ..................................................................... 11
  4. 4. 3SIIB MBA_ABTable 9: Exporting Countries of Fresh Onions to India .............................................................................. 12Table 10: State wise Area, Production and Productivity of Onion (year 2009-2010) ................................ 13Table 11: Varietal characteristics of commercially grown Onions ............................................................. 14Table 12: Varietal characteristics of commercially grown Onions in Maharashtra .................................... 15Table 13: Harvest Pattern in leading Onions Growing States..................................................................... 16Table 14: Onion production Seasons (in Maharashtra)............................................................................... 17Table 15: Onion Required by Different Countries...................................................................................... 18Table 16: Packing Specifications of some Countries .................................................................................. 19Table 17: Price of Onions in Metros cities for year 2010 ........................................................................... 25Table 18: Major Importing Countries from India ....................................................................................... 27Table 19: Fresh Onion exports to Malaysia ................................................................................................ 28Table 20: Comparison between India and Netherlands .............................................................................. 29Table 21: Chain of events from farm to shipment ...................................................................................... 32Table 22: Storage Requirements of Fresh Onions ...................................................................................... 33Table 23: Product standard requirements.................................................................................................... 33Table 24: Cost Calculation per container .................................................................................................... 34Table 25: Sea Freight to Different Destinations ......................................................................................... 35Table 26: ITC (HS) No. .............................................................................................................................. 36Table 27: Import Tariff for Fresh Onions by India ..................................................................................... 36Table 28: Import Tariffs by other countries on India .................................................................................. 37Table 29: Good Agricultural Practices (GAP) of Onions ........................................................................... 38Table 30: Agri-Export Zones in Maharashtra and implementing agencies ................................................ 39Table 31: List of GLOBALGAP certification agencies in India ................................................................ 39Table 32: Documents required for exports of Fresh Onions ....................................................................... 41 Table of FiguresFigure 1: Showing Process before exporting of onions .............................................................................. 20Figure 2: Showing Onion Dehydration Process .......................................................................................... 22Figure 3: Comparison between volume and value of onion exported ........................................................ 24Figure 4: Price of Onions in Metros cities for year 2010 ............................................................................ 26Figure 5: The Price Trend ........................................................................................................................... 26Figure 6: Forward and Backward linkages for Onion Exports ................................................................... 31Figure 7: Domestic and Export Marketing of Onions................................................................................. 32Figure 8: Cost of Production per Hectare ................................................................................................... 36
  5. 5. 4SIIB MBA_ABOnion (Allium cepa) belongs to the family Alliaceous. Onion is a vegetable crop consumed allover the world but cannot be grown in abundance in every country. It is mainly grown for itsbulb which is used for consumption, flavoring and seasoning in almost every home. As anitem of world trade, onion ranks second in importance after tomatoes among thevegetables.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 ahighly export oriented crop and earn valuable foreign exchange for the country. Though Indiaproduces a significant quantity of onions it is not regular and sufficient enough to meet thedemands for both domestic requirement and exports. CHAPTER 1 - GLOBAL SCENARIOOnion ProductionWorld ProductionOut of all the vegetable crops produced for export onion occupies 10% of total area and also interms 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 100.00 100.00Source: COMTRADE, United Nations (2008-09)
  6. 6. 5SIIB MBA_ABIndia ranks second amongst the onion producing countries in the world in terms of area as wellas production. The first is China. India has a total of 863.5 thousand hectares of land under as ofin 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 20081 China 18,046,822 19,054,000 19,598,050 20,567,295 20,817,2952 India 7,760,600 9,432,500 10,847,000 13,900,000 13,565,0003 United States of America 3,767,750 3,334,070 3,249,880 3,612,300 3,407,3704 Pakistan 1,449,025 1,764,800 2,055,700 1,816,400 2,015,2005 Turkey 2,040,000 2,070,000 1,765,396 1,859,442 2,007,1206 Iran (Islamic Republic of) 1,626,885 1,685,450 2,038,363 2,013,564 1,849,2757 Egypt 895,491 1,302,125 1,119,890 1,485,933 1,728,4178 Russian Federation 1,673,420 1,758,740 1,788,750 1,317,984 1,712,5009 Brazil 1,157,562 1,137,684 1,345,905 1,360,300 1,367,06610 Japan 1,128,000 1,087,000 1,161,000 1,265,000 1,271,00011 Mexico 1,240,762 1,230,888 1,238,236 1,387,188 1,252,44112 Netherlands 1,224,700 1,082,000 942,000 1,085,000 1,130,00013 Republic of Korea 947,797 1,023,331 889,619 1,213,375 1,035,07614 Spain 1,030,449 1,006,051 1,099,551 1,184,250 1,098,40015 World 60,930,673 63,977,507 66,212,364 71470880 72,348,213Source: United Nations, Food and Agriculture Organization, FAO Stat (2/2011)
  7. 7. 6SIIB MBA_ABOnion ProductivityThe highest productivity of onion is in USA (54.8 MT/ha) followed by Netherlands (43.1MT/ha). India being a second major onion producing country in the world has a productivity of16.26 thousand MT/ha only. India still lags behind in terms of productivity in spite of havingfertile 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 131,626Source: United Nations, Food and Agriculture Organization, FAOStatIndias position as an exporting country for fresh OnionsIndia’s onion export has made a gradual growth during the last four and half decades. In 2009India occupied 12.35% share in total onion exports in the world. Thus being the second largestexporting 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 thelargest onion exporting country in the world. This is mainly because its productivity is almostthree times that of India and its domestic consumption is much lower too as compared to India.
  8. 8. 7SIIB MBA_ABTable 4: Indias 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 3.30Source: COMTRADE, United NationsMajor Importing Countries of Fresh OnionsUSA is the major onion importing country followed by UK, Malaysia, Germany, and RussianFederation. Though US ranks first in terms of Productivity but its production is not sufficientenough to support its population. As a result it imports its major demand for onions. Thus USand UK are the main target markets for Indian onion exports which is still not explored.
  9. 9. 8SIIB MBA_ABTable 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 1,903.00Source : COMTRADE, United NationsImporting Countries of Fresh Onions from IndiaThe major countries to which India exports onions are Malaysia, Pakistan, Sri Lanka, Singaporeand Nepal. From the table below it is observed that Indian exports are concentrated to theSAARC and geographically nearby countries only. US, UK and Japan being the major marketsfor onion imports, India does not export to them. Hence there is a need to increase the exports tothese countries by adapting to the quality standards and varietal requirements by such countries.
  10. 10. 9SIIB MBA_ABTable 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 0.00Source : COMTRADE, United Nations
  11. 11. 10SIIB MBA_ABCompetitive AnalysisNetherlands 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 domesticconsumption, 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. climaticconditions which lead to all year round production of onions and there is vast scope forincreasing 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 18Source : COMTRADE, United NationsImporting Countries of Fresh Onions from MexicoIndian share in world onion exports is 12% and that of Mexico is 11%. Hence it qualifies as aclose contender to Indian onion exports. Its exports have been increasing over the years. Mexicotoo exports to the major onion importing countries. This is mainly due to proximity to thesenations. And hence India needs to keep a check on its contenders.
  12. 12. 11SIIB MBA_ABTable 8: Importing Countries of Fresh Onions from MexicoQuantity in 2006 2007 2008 2009MTValue in US$Mill.Sr Country Qty Valu Qty Valu Qty Valu Qty ValuNo 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 02 Canada 53,754.00 21.00 20,584.00 26.00 19,785.00 26.00 22,126.00 27.003 United 3,976.00 4.00 6,474.00 11.00 7,295.00 13.00 6,273.00 13.00 Kingdom4 Ireland 1,640.00 2.00 1,725.00 3.00 1,547.00 2.00 1,612.00 4.005 Italy 0.00 0.00 25.00 0.00 1,273.00 1.00 4,186.00 3.006 Guatemal 6,761.00 1.00 9,670.00 1.00 9,635.00 1.00 15,920.00 2.00 a7 El 11,231.00 1.00 8,846.00 1.00 7,413.00 1.00 6,206.00 1.00 Salvador8 Netherlan 516.00 0.00 0.00 0.00 203.00 0.00 1,009.00 1.00 dsSource: COMTRADE, United Nations
  13. 13. 12SIIB MBA_ABExporting Countries of Fresh Onions to IndiaThough India is self-sufficient in terms of onion production and sufficing its domesticconsumption sometimes due to bad climate and lower production it has to import onions. In lastfive years India had to import only once in year 2009 due to slump in onion production. Itimported majorly from Spain, Netherlands and Pakistan. A total quantity of 830 MT. wasimportedTable 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 830.00Source : COMTRADE, United Nations
  14. 14. 13SIIB MBA_AB CHAPTER 2 THE INDIAN SCENARIOState 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 lakhha. But the production is the highest in China (48 lakh MT) as against India (44 lakh MT). Out oftotal annual production of about 60 lakh tonnes of country, about 16 lakh tonnes are produced inMaharashtra alone.Maharashtra ranks first in terms of area, production as well as productivity. Out of total annualproduction of about 60 lakh tonnes of country, about 16 lakh tonnes are produced in Maharashtraalone. The onions produced in the Nasik region of Maharashtra are in major demand for itsstrong 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 equivalentproductivity as that of Maharashtra. It is showing good signs of progress in terms of onionproduction.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
  15. 15. 14SIIB MBA_AB 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 7729.13Source: NAFED ReportVarietal characteristics of commercially grown OnionsThe 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, AgrifoundRose(Brick red) and Arad (H) (yellow) which can be usefully exploited for the major markets ofUS, 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
  16. 16. 15SIIB MBA_AB 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 diameterSource: NAFED ReportVarietal characteristics of commercially grown Onions in MaharashtraPhule Safed and Baswant-780 are the major varieties grown and exported. Phule Safed apartfrom being grown all year round is good for dehydration purpose as well for processed onionproducts.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
  17. 17. 16SIIB MBA_AB Europe 7 AFDR Late Kharif /Rabi Dark Red Fairly Good for Storage 8 AFLR Rabi Light Red Good StorageSource: NAFED ReportHarvest Pattern in leading Onions Growing StatesFrom the table it is clear that India has year round production of onions due to which along withsatisfying 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 on on on on on on on on on 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 on on on on on on on on on
  18. 18. 17SIIB MBA_AB 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 onSource: NAFED ReportOnion production Seasons (in Maharashtra)Major production of onions takes place in Rabi / Winter season. This comes to harvest inFebruary to March. This onion produced in summer (Rabi season) is suitable for export. About50% 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 %
  19. 19. 18SIIB MBA_AB /Unhali) February March month)Source: DIRECTORATE OF ECONOMICS AND STATISTICS,NEW DELHI (2008-09)Onion Required by Different CountriesThe requirement of onion size is different by different countries. The European and Japanesemarkets require large onions of 60-70mm of yellow colour. The Middle East and Gulf countriesrequire onions of middle sizes (40 – 60mm) while SAARC and other south-east Asian countriesrequire 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 – 70Source: MSAMB, Pune(2008)Packing Specifications of some CountriesOnions are needed to be packed in netted poly bags before exporting. These bags are produced asper the country requirement. Onions are exported in the range of 5kg bags to 25kg bagsdepending on the country to which it is exported.
  20. 20. 19SIIB MBA_ABTable 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 KgSource: 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.
  21. 21. 20SIIB MBA_ABFigure 1: Showing Process before exporting of onions
  22. 22. 21SIIB MBA_ABCHAPTER 3 - PROCESSED ONION PRODUCTS & MANUFACTURING PROCESSIt is Rs 500-crore onion dehydration industry in India. Globally, India holds about 50 per centmarket share in the dehydration business. India has about 95 active onion dehydration units, ofwhich 70 are located in Gujarat, including Bhavnagar, Mahuva, Vadodara and Gondal. Thecountry has about 30 export oriented units (EOUs) of dehydrated onion products. Major exportdestinations include Europe, Russia, France and America, where annually around 60,000 tonnesof 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
  23. 23. 22SIIB MBA_ABFigure 2: Showing Onion Dehydration Process
  24. 24. 23SIIB MBA_ABCompany ProfileCompany- Chhatariya Veg Expo Pvt. Ltd.-It is one of the main exporting companies of processed onions.Location- Mahuva in the state of GujaratMain 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 Europeancountries.Production-1200 MT per annum of dehydrated Onions.
  25. 25. 24SIIB MBA_AB CHAPTER 4 – SHORTLISTING EXPORT TARGET MARKETSTrend in Onion ExportIn the last twenty years the Indian onion exports by volume has multiplied by almost six timesbut the volume for the same has multiplied by seven and a half times. Thus we see that thedemand and price quoted for Indian onions have increased over the years. This can be mainlycontributed to the hybrid varieties which has not only increased the production but productivityof onions over the years. Ongoing research to produce less pungent yellow onions to be exportedto 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 TonsFigure 3: Comparison between volume and value of onion exportedPrice of Onions in Metros cities for year 2010The price of onions fluctuates in every season or it can be said that it fluctuates every month. Theprice offered also differs from region to region. This can be seen from the following graph. Theprice is lowest in the month of April which was received at Bangalore while highest in the monthof 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
  26. 26. 25SIIB MBA_ABthe 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 theMSP levied sometimes takes away the exporters edge in the international market. For examplethe Indian government had fixed the minimum export price (MEP) for onions at USD 475 atonne 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 internationalmarkets, rendered the Indian produce uncompetitive.Table 17: Price of Onions in Metros cities for year 2010 Price(RS/Qtl)City Bangalore Delhi Kolkata MumbaiJan 1130.86 1393.23 1753.02 1364.27Feb 1009.53 1204.84 1614.88 1026.37Mar 629.39 836.68 693.37 741.92Apr 498.96 680.9 733.93 643.29May 552.51 539.55 650.3Jun 629.28 581.01 910.03 729.84Jul 658.36 739.5 936.34 757.65Aug 880.51 809.79 1215.05 865.99Sep 1291.61 1281.48 1742.13 1383.07Oct 1359.02 1451.9 2100.26 1613.62Nov 1850.24 1505.8 2673.2 2398.26(Source: http://dacnet.nic.in)
  27. 27. 26SIIB MBA_AB 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 MonthsFigure 4: Price of Onions in Metros cities for year 2010The Price TrendWhile in Table it can be clearly seen that onion has started getting better price in the recentyears. This has been contributed to the increasing demand of Indian onions overseas.Figure 5: The Price Trend
  28. 28. 27SIIB MBA_ABSource:- Ministry of Consumer Affairs - http://fcamin.nic.inMajor Importing Countries from IndiaThe 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 totallyoccupied by Indian onions but from last 4-5 years onions from Netherlands, Pakistan and Chinacan be seen. These countries are leveraging on the competitive pricing, low cost of transport dueto geographical nearness and bulk cargo.Table 18: Major Importing Countries from India 2007 2008 2009 2006Sr Country Qty Value Qty Value Qty Value Qty ValueNo.1 Malaysia 2,58,251.00 53.00 1,79,804.00 55.00 2,87,432.00 75.00 3,22,510.00 92.002 Pakistan 77,998.00 19.00 13,622.00 3.00 17,331.00 4.00 2,18,177.00 69.003 Sri Lanka 1,29,306.00 22.00 1,48,535.00 44.00 1,68,136.00 45.00 1,47,436.00 46.004 Singapore 22,942.00 4.00 18,311.00 6.00 25,507.00 6.00 27,140.00 8.005 Nepal 0.00 0.00 0.00 0.00 0.00 0.00 48,565.00 6.006 Mauritius 11,797.00 3.00 11,311.00 5.00 10,553.00 4.00 11,688.00 6.007 France 4,364.00 1.00 4,283.00 2.00 5,814.00 2.00 5,548.00 3.00 China, Hong8 75.00 0.00 0.00 0.00 28.00 0.00 5,262.00 3.00 Kong Sar
  29. 29. 28SIIB MBA_AB9 Italy 194.00 0.00 576.00 0.00 4,880.00 2.00 1,849.00 1.0010 Bhutan 0.00 0.00 0.00 0.00 1,946.00 0.00 2,014.00 1.00 United11 588.00 0.00 925.00 0.00 2,015.00 1.00 2,044.00 1.00 Kingdom12 Greece 4,919.00 1.00 1,012.00 0.00 1,958.00 1.00 0.00 0.0013 Oman 8,532.00 2.00 12,486.00 9.00 15,817.00 6.00 0.00 0.0014 Philippines 0.00 0.00 435.00 0.00 35,238.00 4.00 0.00 0.0016 Qatar 26,118.00 5.00 22,199.00 5.00 31,264.00 7.00 0.00 0.0018 Saudi Arabia 27,617.00 5.00 27,719.00 7.00 0.00 0.00 0.00 0.0020 Seychelles 0.00 0.00 0.00 0.00 1,261.00 1.00 0.00 0.00Fresh Onion exports to MalaysiaThe comparison between Indian Exports and other countries exports is shown as below.Table 19: Fresh Onion exports to Malaysia Country Qty Value PercentageMalaysia 4,56,111.00 133 100India 3,22,510.00 92 70Other Countries 133601 41 30Source: United Nations, Food and Agriculture Organization, FAOStat (2/2011)The nearest competitor as of now is Netherlands. But in future India can expect stiff competitionfrom China and Pakistan as well. These countries have started aggressive marketing of theirproduce in the Malaysian and Gulf markets.
  30. 30. 29SIIB MBA_ABTable 20: Comparison between India and NetherlandsYears 2006 2007 2008 2009India 2,58,251.00 1,79,804.00 2,87,432.00 3,22,510.00Netherlands 83,987.00 90,666.00 37,521.00 50,919.00Source: United Nations, Food and Agriculture Organization, FAOStat (2/2011)U.S imports of Dried & Dehydrated Onions from Selected CountriesIndia 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 areintermittent. While India has been a regular exporter to the US. The exports are high when thereis good production of onions in India and suffer loss of market in the hands of China when it islow. Value: USDYear 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Mexic 1,300,43 7,457 4,689 15,979 21,353 466,555 643,780o 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 2,711,85China 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 1,734,73India 339,935 705,626 779,124 416,995 2 3 5 1 9 8 1,002,13 1,589,87 1,385,35Egypt 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 7,132,38Total 923,151 3 5 6 9 3 5 8 4 7Worl 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 8,984,10d 2 1 0 5 8 6 7 0 6 7Source: United Nations, Food and Agriculture Organization, FAOStat (2/2011)
  31. 31. 30SIIB MBA_ABMajor DestinationsThus the major markets shortlisted for onion export having potential for further expansion areMalaysia foe fresh onions and US for processed onions.Major CompetitorThe major competitors classified are Netherlands for fresh onions in Malaysian market whileChina and Mexico for processed onions in US market.Importers Directory for UNITED STATESSome of the major importers of processed onion products from India in US are as follows. Thelist of such other importers can be found and they can be contacted on the APEADA website aswell 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 MejiaSource- http://agriexchange.apeda.gov.in
  32. 32. 31SIIB MBA_AB CHAPTER 5- MARKETINGFor 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 integrationcan be achieved by forming farmer’s co-operatives, use of certified and hybrid seeds, R&D fordeveloping new varieties according to demands in other potential importing countries.Developing infrastructure for proper storage, onion irradiation and value addition to get betterprice in the international market is needed.The regulatory policy and quality standards needs to be revamped in such a way that it willfurther increase the exports. New markets need to be explored, promotional activities in thesemarkets needs to be undertaken. Branding of the products needs to done.Figure 6: Forward and Backward linkages for Onion Exports
  33. 33. 32SIIB MBA_ABThe 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 OnionsChain of events which happen up to shipment of Fresh OnionsFollowing are the activities which are undertaken farm to shipping yard. This has been alreadycovered.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
  34. 34. 33SIIB MBA_AB 5 Precooling 6 Cold storage 7 Palletizing 8 Refrigerated trucks 9 Shipment(Source: NAFED Report)Storage Requirements of Fresh OnionsThe storage requirements of fresh onions while in the transit is shown in the following table.Table 22: Storage Requirements of Fresh OnionsSr. Relative Storage Temperature Freezing Point DescriptionNo. Humidity Period1 0o C 65-70% 3-5 months low -- temperature.(Source: NAFED Report)Product standard requirementsThe product standards required for exports and during the consignment tolerance is as follows-Table 23: Product standard requirementsSr. Grade Grade tolerancesNo. designation1 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 of2 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.
  35. 35. 34SIIB MBA_AB3 Class II 10% by number or weight of onion not satisfying the requirements of the grade but meeting the minimum requirements.Cost CalculationThe cost calculation from harvest to pack house to port is as follows. The total cost of filling a40’ container with onion nylon bags comes to about Rs.54485 or Rs.2.17/kg.Table 24: Cost Calculation per containerCost estimates for exports of onions from India (as per informationcollected 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 (25000Particulars kg)Nylon Bag (Capacity: 20Kg) Rs. 8/- per bag 8100Cost of loading & unloading 5000Cost of pallets 2500Local transportation 17000
  36. 36. 35SIIB MBA_ABContainer Transportation(JNPT - Vashi - JNPT) 7000Terminal Handling Charges 14885Total 54485 or Rs. 2.17/kgSource: MSAMB, Maharashtra, NAFED ReportSea Freight to Different DestinationsThe freight charges vary if using a 20’ or a 40’ container. It is preferable if 40’ containers areused 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 ofcontainer 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 1600Kuala Lampur/Singapore 600 900UK/Amsterdam 1700 2700Freight rates for ordinary container are as follows:Dubai/Doha 600 900Kuala Lampur/Singapore 100 175Flaxo (UK)/Amsterdam 900 1450http://www.msamb.com/english/export/globalgap.htmCost of Production per HectareThe cost of production of onion comes to around Rs.54, 000 per ha. The onion crop requires lessapplication of pest control as it is a hardy crop. The overall cost of production is very less ascompared to other cash crops. This is an advantage for producers as well as exporters
  37. 37. 36SIIB MBA_ABFigure 8: Cost of Production per Hectarehttp://www.jains.com/PDF/crop/cultivation%20of%20white%20onion.pdfITC (HS) No.The ITC (HS) codes for different forms of onions are different. The code varies if the onion isfresh onion or dried and processed or is used as a seed for onion production.Table 26: ITC (HS) No.No. Type07031010 Onions, shallots07122000 Dried onions, whole, cut, sliced, broken or in powder, but not further prepared12099130 Onion Seeds, fruit and spores, of a kind used for sowinghttp://dgft.orgImport Tariff for Fresh OnionsThe import tariff imposed by Indian Government is shown in the following table.Table 27: Import Tariff for Fresh Onions by IndiaCountry name India
  38. 38. 37SIIB MBA_ABProduct 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 0Source: WTO.orgImport TariffsThe 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 [ShareCountry [AVG]- Free in [Max]- [AVG]- Free in [Max]- Free in Product in %]- in %]-name FBD %]- FBD MFN %]- MFN %]- FBD Imp FBD MFN ImpEuropean ONIONS 10.7 22.6 199 100 11.8 21.4 195 1.3 16.1UnionUnited ONIONS 4.8 23.7 132 100 5 23.2 132 1.2 24.6StatesMalaysia ONIONS 151.1 11.8 0 100 3.8 63.9 80 0.6 81.1
  39. 39. 38SIIB MBA_ABSri Lanka ONIONS 50.4 0 66 100 24 0.5 60 1.4 2.5Bangladesh ONIONS 191.2 0 200 100 20.2 4.2 25 0 0Good Agricultural Practices (GAP) of OnionsSome good agricultural practices to be followed in case of onions are use of hybrid seeds, propernutrient and water management, plant protection and weed management.Table 29: Good Agricultural Practices (GAP) of OnionsSr. No. Good Agricultural Practices (GAP)1 Use of hybrid seeds2 Nutrient and water management3 Plant protection4 Weed management(Source: NAFED Report)Foreign Trade PolicyFor the agriculture sector there are various schemes to give impetus to onion exports. Some ofthem provided by FTP are as followsA new scheme called "Vishesh Krishi Upaj Yojana (Special Agricultural Produce Scheme)" toboost exports of fruits, vegetables, flowers, minor forest produce and their value added productshas been introduced. Under the scheme, exports of these products qualify for duty free creditentitlement (5 per cent of Free On Board (fob) value of exports) for importing inputs and othergoodsDuty 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 theAgri- Export Zone (AEZ)
  40. 40. 39SIIB MBA_ABUtilizing funds from the Assistance to States for Infrastructure Development of Exports(ASIDE) scheme for development of AEZsLiberalization of import of seeds, bulbs, tubers and planting material, and liberalization of theexport of plant portions, derivatives and extracts to promote export of medicinal plants andherbal products.Agri-Export Zones in Maharashtra and implementing agenciesVarious AEZ’s have come up for giving stimulus to onion exports and processing units. Thescheme of AEZ is implemented by the Ministry of Commerce, GoI, through APEDA (theAgriculture and Processed Food Export Development Authority), New Delhi – the nodal agencyfor AEZ.Table 30: Agri-Export Zones in Maharashtra and implementing agenciesSr. AEZ MOU Signed DistrictsNodal Agency1. Onion 16th Jan. 2003 Nasik, Pune, Ahmednagar, Jalgaon, Satara, Solapur.http://www.msamb.com/english/export/globalgap.htmList of GLOBALGAP certification agencies in IndiaThe following are the certifying agencies for GLOBALGAP certificates. Here the exporters haveto apply.Table 31: List of GLOBALGAP certification agencies in IndiaName of the Address & Contact Contact Person & EmailCertification Number AddressAgencyControl 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
  41. 41. 40SIIB MBA_ABECOCERT Sector - 3, S-6/3 &4, Gut No. 102, Dr. Selvam DanielIndia 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.inEUROCERT Plot No 372, Phase I, Industrial Area Ravinder KakkarINDIA 134113 Panchkula agri@iclcertifications.com Tel: 172580467, 572900 Fax: 172 569849 Website: www.eurocert1.comFoodCert 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.comIMO No. 26, 17th Main, HAL A II Stage Umesh ChandrasekharCONTROL 560008 Bangalore Tel: +91 80-52 01 546 imoind@vsnl.com(Pvt.) Ltd. Fax: +91 80-52 72 185 www.imocontrol.netINDOCERT 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:02532502213SGS India Pvt. 2nd Floor, Ridhi-Sidhi App., Near Mr. Swapnil kadamLtd. 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.comTUV SUD Off Saki Vihar Road, Saki naka, Andheri Mr. Mahesh DeshpandeSouth 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.inhttp://www.msamb.com/english/export/globalgap.htm
  42. 42. 41SIIB MBA_ABGuidelines for Onion ExportersMSAMB is the exclusive canalizing agency for the state of Maharashtra. Here the persons haveto register who want to undertake onion exports. The following steps have to be undertaken byhim.1. Registration2. 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 ofassociate shippers6. Research and development fund- @ rs.20/- per metric ton while applying for the quota. Thisfund will be utilized for the purpose of research and development of production, quality, storage,handling etc., Of export oriented agricultural commodities, particularly onion by nationalhorticultural research and development foundation (NHRDF), Nasik.Extension of validity - grace period of 7 days8. DocumentationDocuments required for exports of Fresh OnionsTable 32: Documents required for exports of Fresh Onions Document Document Document Documents s RelatedSr. Document Organic s Related s Related Related To To Foreign OtherNo s Related Certificatio To To Quality Of Exchange Documents. To Goods n Shipment Payment Goods Regulation s1 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
  43. 43. 42SIIB MBA_AB 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 Certification3 Certificate Bill Of Health Of Origin Handing Certificate4 Airway BillExport PromotionMainly 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.
  44. 44. 43SIIB MBA_ABSWOT AnalysisStrengths  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.
  45. 45. 44SIIB MBA_AB  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 IndustryStrength1. Round the year availability of Onions.2. Support from the central Government.3. Competitive manufacturing facilities available.4. Increasing overseas market and demand.Weakness1. High requirement of working capital2. Low availability of new reliable and better equipment’s and machinery3. 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.Opportunity1. Large crop and material base in the country due to agro-ecological variability offers vastpotential for agro processing activities.2. Opening of global markets may lead to export of our developed technologies and facilitategeneration of additional income and employment opportunities.
  46. 46. 45SIIB MBA_ABThreats1. Competition from global players2. Loss of trained manpower to other industries and other professions due to better workingconditions 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
  47. 47. 46SIIB MBA_ABReference 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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