Onion Cultivation in India – Profit and Cost of Farming

Onion is one vegetable that is consumed worldwide and is an ingredient in at least one meal of the day. Not just in India, but worldwide, onion is one of the few vegetables which is added in almost all main courses. Onions are consumed raw but mostly consumed cooked. The flavor exuded by onion puts many in doubt if it’s a vegetable or a spice, but that’s for debate. 

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With a crop that is in demand almost throughout the year, it’s expected to fetch a good price but onions are cultivated widely too and are priced evenly throughout the year except for some short periods where demand is extremely high and production is low due to some reason. This does happen once a year or once in a few years. In the year 2000, onion prices shot up to near 120 Rs per kilo but then the price stabilized in less than 2 weeks. During these 2 weeks, the farmers who had produced made a huge profit in the market. But this is not a common scenario and most often the ones who profit are those who are into the business of trading and storage.

With the right temperature, weather conditions, soil, Irrigation, and fertilizers, chances of profiting from Onion cultivation are very high. Chances are losses are low due to various factors including the fact that the shelf life for onion is high when stored properly. Farmers almost always go on a profit when it comes to onion cultivation and is a sure crop to make a profit. 

Reference : 

http://nhb.gov.in/pdf/vegetable/onion/oni013.pdf

http://apeda.in/agriexchange/thrust_product/Varieties/07031010.htm

Onion Cultivation , Yield and Profit per acre

Seeds (4 KG)6000Rs
Land preparation and Labor2000 Rs
Farm Yard manure6000 Rs
Transplaning cost5000
Irrigation5000
Harvesting4000
Transportation4000
Total Cost32000
Yield70 Quintal per acre
Total Revenue105000 (at the price of 15 Rs per kilo)
Total Profit 73000

With a moderate yield of 70 Quintals per acre and a price of 15 at wholesale which is very low, farmers are still able to make a profit of 73,000 Rs in 4 and a half months. With 2 crops, the annual revenue per acre is approximately 1 and a half lakh, which is more than what most other crops can earn for farmers.