Economic evaluation of onion storage structures and strategic marketing approaches for price risk mitigation

India is the second-largest producer of fruits and vegetables in the world, and onions (Allium cepa L.) are an important crop because of their widespread domestic use and high foreign exchange revenues. India produced over 26.74 million tonnes of onions in 2019-20, with Maharashtra accounting for the largest share at 28.32%. Onion farmers must deal with unstable market prices that range from ?10 to ?205 per kg, even with significant production. As a result, storing is an essential tactic to maintain revenue. In order to evaluate the economics, profitability, and limitations related to the storage of onions in Western Maharashtra, this study was conducted. Multistage random selection was used to gather primary data from 120 onion growers via a structured interview schedule. The cost-effectiveness of seven different types of storage buildings—from modified ventilated double-row structures to inexpensive thatched roof units—was examined. The findings showed that storage losses under conventional methods often range from 30 to 50 percent, mostly as a result of inadequate infrastructure and a lack of scientific storage understanding. Even while contemporary constructions greatly increase profitability and decrease losses, excessive construction costs continue to be a significant obstacle. According to the data, storage produces a profit after August. Because of seasonal market constraints, the highest returns were recorded in November (182.66%). But just 36.09% was the average profit over a six-month storage period, suggesting limited but possible feasibility. The study comes to the conclusion that while scientific storage techniques can reduce price risk and increase farmer income, wider implementation would require funding, technical assistance, and public awareness. Reducing post-harvest losses and ensuring sustainable onion production require investments in low-cost scientific storage methods and capacity building.

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Publication Details

Journal
International Journal of Agriculture Extension and Social Development
Published
2025-05-01
DOI
https://doi.org/10.33545/26180723.2025.v8.i5b.1865
Primary Topic
Garlic and Onion Studies
Type
article
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article

Economic evaluation of onion storage structures and strategic marketing approaches for price risk mitigation

Gopal Joshi, SB Sapkal, RB Hile, SS Mohalkar
International Journal of Agriculture Extension and Social Development
Garlic and Onion Studies
article

Economic evaluation of onion storage structures and strategic marketing approaches for price risk mitigation

Gopal Joshi, SB Sapkal, RB Hile, SS Mohalkar
article en

Abstract

India is the second-largest producer of fruits and vegetables in the world, and onions (Allium cepa L.) are an important crop because of their widespread domestic use and high foreign exchange revenues. India produced over 26.74 million tonnes of onions in 2019-20, with Maharashtra accounting for the largest share at 28.32%. Onion farmers must deal with unstable market prices that range from ?10 to ?205 per kg, even with significant production. As a result, storing is an essential tactic to maintain revenue. In order to evaluate the economics, profitability, and limitations related to the storage of onions in Western Maharashtra, this study was conducted. Multistage random selection was used to gather primary data from 120 onion growers via a structured interview schedule. The cost-effectiveness of seven different types of storage buildings—from modified ventilated double-row structures to inexpensive thatched roof units—was examined. The findings showed that storage losses under conventional methods often range from 30 to 50 percent, mostly as a result of inadequate infrastructure and a lack of scientific storage understanding. Even while contemporary constructions greatly increase profitability and decrease losses, excessive construction costs continue to be a significant obstacle. According to the data, storage produces a profit after August. Because of seasonal market constraints, the highest returns were recorded in November (182.66%). But just 36.09% was the average profit over a six-month storage period, suggesting limited but possible feasibility. The study comes to the conclusion that while scientific storage techniques can reduce price risk and increase farmer income, wider implementation would require funding, technical assistance, and public awareness. Reducing post-harvest losses and ensuring sustainable onion production require investments in low-cost scientific storage methods and capacity building.

International Journal of Agriculture Extension and Social DevelopmentVol. 8(5)
Climate action
Openalex Percentile: Top 93%
Garlic and Onion Studies
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