Production and export of onion from Pakistan

Onion is one of the important condiments used in all households. The world market for onion is expanding with the increase in global population. China and India contributed 47.13% of world onion production. Total world production of onion is about 86.34 million tons and Pakistan occupies 8^th position with 2.25% share in production. Leading onion producing countries with share in production are China (28.68%), India (18.45%), USA (3.89%), Iran (2.90%), Egypt (2.66), Turkey (2.48%), Russian Federation (2.46%) and Pakistan (2.25%). It is estimated that the cash value of the world production of dry onion is about 29490 million US $. More than 90% of onion is consumed within the countries of production. However, the crop is a major export earner for some economies.

Onion is used in a number of ways including, pickling, chutney, sauces and dehydration. Onion bulbs are consumed both cooked and uncooked. In addition the common onion is also an important salad crop when eaten green. Particular varieties have been developed for most of these purposes. Cultivars for dehydration have a higher bulb dry matter. Bulbs for uncooked consumption are sweet, mild-flavored and large; with single centers suitable for making onion “rings”. Recent research has suggested that onions in the diet, may play a part in preventing heat stroke disease and other ailments. Onion bulb is rich in phosphorus, calcium and carbohydrates. The pungency in onion is due to a volatile oil known as allyl-propyl disulphide.

The World onion export market is 6.8 million tons per annum. The top 10 onion importing countries of the world are Malaysia, Russian Federation, USA, Japan, UK and Saudi Arabia which import more than one third of onion traded globally.

Pakistan needs to strive hard to enlarge its share in the existing markets and penetrate into the new markets. It should be kept in mind that our competitors especially India are better organized in terms of product quality, consistent supplies, logistics and market promotion. Malaysia imported onion about 454,000 tons, Saudi Arabia 323,000 tons, Bangladesh 268,000 tons, Sri Lanka 178,000 tons and UAE 175,000 tons during 2011. Pakistan can substantially increase its share in these markets. In addition, Pakistan has established a foothold in Russian Federation by exporting kinnow and its exports are constantly increasing. During this period, Russian Federation imported about 453,000 tons onion. Pakistan can have a reasonable market share by using existing business connections.

Pakistan produced about 1.94 million tons of onion during 2011. The average yield of onion in the country is 13.6 t/ha which is rather low and could be attributed to poor planting densities, low use of fertilizer, weed infestation and use of inferior quality seed. Lack of plant protection measures further aggravates the situation in lowering yields and depressing quality. Though subjected to annual variations, overall area and production of onions in Pakistan have shown an increasing trend during the past 10 years. The good onion crop and reasonable market prices helped the private sector to export almost 173000 tons in 2011.

According to the province-wise area of onion based on the average data: Sindh is the leading onion province, cultivating annually an average area of 56.6 thousand hectares followed by Baluchistan and Punjab with area of 37.8 and 35.1 thousand hectares, respectively. And according to province-wise production of onion: Sindh is the leading in producing 687.5 thousand tons annually followed by Baluchistan and Punjab with production of 678.5 and 293.8 thousand tones, respectively. Generally speaking annual export of onion from the country averaged about 47,474 tons. Pakistan exported 173000 tons of onions in 2011.

Per unit export prices are also low which apparently are attributed to produce quality. Onions for export are sourced from the wholesale market, manually graded and repacked according to the choice of exporters and generally shipped through non-reefer open top containers. The repeated and rough handling, extended time between harvesting and product preparation for export and holding produce under undesirable conditions tend to adversely force the produce quality and as a consequence its marketability and sale price.

UAE, Malaysia and Sri Lanka are the main markets for onion exports from Pakistan. These markets are very convenient and Pakistan has the potential to increase market share. There is need to consolidate position in the existing markets especially UAE, Sri Lanka and Malaysia through market promotion and consistently supplying quality produce, and also identify new markets.