Tamil Nadu Agricultural University (TNAU) has advised farmers to take up small onion cultivation during the on going kharif season as the commodity is likely to fetch higher price when it arrives in the market in October-November.

According to latest report released by Domestic and Export Market Intelligence Cell (DEMIC) attached to TNAU, the price of small onions produced in Tamil Nadu is likely to rule at around Rs 13-16 per kg in October-November. DMEIC has given its price forecast after analysing small onion prices for the past 10 years in Dindugal and Ottanchathram, two major onion markets in Tamil Nadu.

Karnataka, which is the second largest onion producer in the country with 22% share in the total onion production of 135 lakh tonne, is a major competitor of Tamil Nadu in small onion trade.

Small onion arrivals in Karnataka take place between April and October. Generally arrivals from Karnataka decide the price of small onion in Tamil Nadu every season.

Although it is not a major agro commodity for Tamil Nadu farmers, small onion cultivation is slowly picking in recent years.

The state produced 3.05 lakh tonne of onion from an area of 0.35 lakh hectares last season.

Perambalur district in TN has the highest share of 24.6% followed by Trichy 14.2%, Coimbatore 13.7% and Erode 10.8% districts. Small onion constitutes more than three fourth of the state?s total onion production.

Price of small onion increased to Rs 16 per kg in June from Rs 12 per kg in May this year due to shortage in the market. Small onion arrivals start in October in Tamil Nadu after supplies from Karnataka declines.

Festive demand and declining arrivals from Karnataka coupled with export demand will keep the small onion price firm, the TNAU report said.

The university has also recommended farmers to sow the seed crop to reduce cost of cultivation. Maharashtra occupies the first position in the country?s onion production with a major share of 29% followed by Karnataka 22%, Gujarat 10.5%, Madhya Pradesh 6.5%, Andhra Pradesh 5%, Rajasthan 3% and Haryana 2.5 %.

India exported 18.73 lakh tonne of onion in 2009-10.