New Delhi, Mar 27 (KNN) Owing to increase in prices in international market and reduced demand in domestic market, onion dehydration units are suffering in terms of piling up of unsold stock indirectly hampering the production in Gujarat.

Many Onion dehydration units in the state of Gujarat are on the verge of closure. Further, ministry of commerce and industry has reduced the transport assistance from 7% to 3% which has worsened the situation more.

In numeric terms, the 2016 production of dehydrated onions were approximately 60,000 tonnes and out of which 20,000 carried forward to the next year. Similarly, in 2017, 25000 tonne out of total production of 60,000 tonne has been carried forward to this year. This increase in unsold stock has led to indirect dampening of the current year’s production.

According to reports, more than 60-70 units have shut down their operations and rest are on the verge of it due to rise in unsold inventories and decline in demand for exports.

The industry has even requested the Ministry of Commerce to bring a minimum export price (MEP) for dehydrated onions and also urged to remove the export duty levied, but nothing has been done even after six months, he added.

He said that if no steps will be taken to save the onion dehydration units, the industry would drown.

India, being the second largest exporter, contributes approximately 40 per cent of the total global export of dehydrated onions and the United States is the leader, exporting approximately 50 per cent and the rest is exported by Egypt and China.

India exports to major countries, such as Russia, Germany, France and the United States, and the total export goes up to 60,000 metric tonne per year and its main competitors are China and Egypt, but India has quality and price advantages. (KNN/YV)