Onion Market Research Articles

Evaluation of Trend Models Performance and Forecasting Onion Production: A Comparative Study

Onions, a significant spice crop in Bangladesh, frequently experience price surges due to an imbalance between demand and supply, compelling the government to import onions. The volatility of the onion market in Bangladesh and the measures needed to stabilize the situation require intensive policy attention. Therefore, this study was carried out to forecast the onion production over time and to evaluate the efficacy of various trend models. The secondary data was collected from the Food and Agriculture Organization's Statistical Database (FAOSTAT) from 1972 to 2022. The autoregressive integrated moving average (ARIMA) model was used to predict the onion production over time. Additionally, metrics such as modified and the coefficient of determination were used to evaluate the effectiveness of eight trend models comprehensively. The findings indicate that the cubic model is superior to others since it has larger and adjusted values. The models' accuracy is also determined utilizing mean absolute percentage error (MAPE) and mean absolute deviation (MAD) metrics. The cubic trend model exhibits lower MAPE and MAD values of 29.43% and 80638.67, respectively. Therefore, it is concluded that the ARIMA (2, 2, 2) model is the best model for forecasting the annual production of onion in Bangladesh. A five-year trend analysis spanning from 2023-2027 indicates an upward trend. Such a result offers a critical insight for stakeholders and policymakers in formulating sustainable onion production strategies. J Bangladesh Agril Univ 22(3): 386-395, 2024

Production and Marketing Constraints Faced by the Chinese Onion (Allium chinense) Growers in Nagaland

The present study was conducted to examine the in-depth information of the socio-economic and constraints faced by the respondents during the production and marketing of Chinese onion in the concerned place of study. The data were collected through personal interview schedule by the researcher by adopting the purposive simple random technique from one district and two blocks were purposely selected and three villages from each block were selected by random method, which has make a total of 90 respondents selected from the six numbers of selected villages. The study revealed that majority of the farmers (62.00%) belonged to the middle age group (40 to 61 years). The study revealed that majority of the respondents had small sized field (0.008 to 0.024 ha). Among the various constraints in technology adoption to production, problems due to pest and diseases, lack of irrigation facility, lack of proper market, were the major challenges. Lack of all weather roads, no support prices and no reliable sources of distant market information were the major constraint faced in the marketing of Chinese onion.

Original Research Article Analyzing Price Behaviour and Constraints in Marketing of Small Onion in Tamil Nadu, India

This study examines market trends and seasonal patterns in small onion Markets in Tamil Nadu, while also investigating challenges faced by various stakeholders in the onion supply chain. The various analyses have made use of secondary data that has been gathered from different sources. The NHRDF office in Coimbatore, NHB website and AGMARKNET website are the sources of the monthly data on wholesale market prices and arrivals of small onions f markets of Dindigul, Chennai, Coimbatore and Idukki from 2014 to 2023. Primary data also obtained to fulfill the one of the research objectives by surveying the sample of respondents. Two districts were selected purposefully: Perambalur and Trichy districts, based on the top onion producing districts in Tamil Nadu. The sample size constitutes 180 respondents (80 farmers, 40 retailers, 20 wholesalers and 40 consumers) were randomly interviewed with help of pre structured interview schedule. Trend analysis revealed increasing price trends across all markets, with Idukki experiencing the highest rate of increase. Seasonal index analysis indicated that prices in Tamil Nadu markets are influenced by arrivals, with lower prices during peak arrival periods., while Idukki market in Kerala prices less influenced by arrivals. Farmers struggle primarily with high labor costs (78%) and high cost of fertilizers pesticides and machineries (68.7%), while consumers face problems with price fluctuations (68.8%) and quality concerns (68.6%), retailers face problems with lack of storage facilities (76.27%) and absence of facilities for grading (64.85%), and wholesalers struggle with financial risks (79.2%). The study's findings will aid policymakers to focus on improving market infrastructure, regulating intermediaries, and supporting farmers in managing costs. Leveraging existing labor schemes could help alleviate workforce shortages. Furthermore, customers would gain from initiatives to maintain price stability and raise quality standards.

Price Dynamics and Integration of Onion Markets in India

The current study uses the Correlation matrix, Vector Auto Regressive model, Granger causality test and Instability index to investigate the level of market integration, price transmission and price instability in the key onion markets in India, namely, Azadpur, Bangalore, Belgaum, Hassan, Haveri, Hubli, Mysore, and Nashik. The findings provided substantial evidence for the co-integration and interdependence of these markets. Bangalore market has a positive relationship with the Nashik and Azadpur markets, with coefficients of 1.15 and 0.54, respectively. Bangalore and Belgaum displayed a solid, significant positive correlation with a coefficient of 0.770. Conversely, some markets show relatively weaker correlations, such as Azadpur and Hassan, with a coefficient of 0.389. Instability across major onion markets revealed that all the markets are volatile, as the instability index was more than 30 per cent. Since there is unidirectional causality from Hubli-Bangalore and Azadpur-Bangalore market pairs, it makes it necessary for future research to examine the influence of internal and external factors like market infrastructure, improving information technology to allow regular flow of market information to assist farmers in increasing their income. Keywords: Granger causality, instability, price transmission, price volatility. JEL Codes: B23, C01, C22, E31.

Strategic mapping of onion supply chains: a comprehensive analysis of production and post-harvest processes in Northwest Ethiopia

IntroductionOnion is a significant vegetable crop in Ethiopia, serving as a source of income for smallholder farmers. However, various challenges in the production and post-harvest handling processes impede a consistent supply and marketing of the crop. This study focused on a comprehensive analysis of the onion supply chain, ranging from production to post-harvest handling, to address the existing production and marketing processes. The research initiative was undertaken to map the onion supply chain from farmers to consumers, intending to establish an improved marketing system in northwest Ethiopia.MethodsThe study area covered three onion-producing districts of the Amhara Region. Data collection involved interviews, observations, and market assessments using a structured questionnaire. Sampling followed a multistage technique. The analysis included descriptive statistics and food system analysis to map the supply chain and estimate marketing margins.Results and DiscussionPost-harvest loss in onion production presents a major obstacle in the farming sector, impacting its growth. The study identified six alternative channels for onion marketing where different actors are involved throughout the supply chain. Key stakeholders include farmers, local collectors, brokers, transporters, wholesalers, retailers, and consumers. Packaging and sorting activities are implemented at different supply chain stages to minimize post-harvest losses. Farm-level activities, including curing, sorting, grading, and ventilating, are crucial for reducing losses. The perishable nature of onion bulbs and the existing production and handling challenges exacerbate post-harvest losses. Efforts to address this challenge demand a comprehensive approach, integrating interventions across the value chain, from improved cultivars and storage infrastructure to enhanced market access strategies. Hence, stakeholders and governmental organizations are urged to promote onion value-addition technologies, including the establishment of processing industries. Such endeavors promote collaborative efforts across the onion supply chain, ensuring sustainable benefits for producers and traders.

An Economic Analysis of Onion Marketing in Uruzgan Province of Afghanistan

The study was carried out to estimate the marketable surplus, marketing cost, price spread, and marketing efficiency of onion in three districts of Uruzgan province. The data were collected from 120 farmers, 120 consumers, 30 wholesalers, and 30 retailers in 2023. The findings showed that the average production of onion was 5597.08 kg/Jerib. After holding 1.84 per cent for domestic purposes, the farmers were left with 98.16 per cent as a marketable surplus. The price spread across different marketing channels showed an inverse correlation with the number of intermediaries involved. Among market channels, Channel-II (Farmer-Retailer-Consumer) had the highest marketing cost. As marketing costs and margins increased, the producers' share in consumers' rupee decreased. The marketing efficiency decreased with the number of intermediaries. The net price received by the farmer was highest in the direct marketing Channel-III (AFN 5.65 per kg of onion). Lack of grading, storage, and transportation facilities were the significant constraints in marketing onion in the province.

Analysis of marketing performance of onion (<i>Allium cepa</i>) among participants in Kaduna and Katsina States, Nigeria

The study analyzed the marketing of onion in Kaduna and Katsina States, Nigeria. A survey of 100 onion farmers and 200 traders in these two states was conducted in 2022. Four villages and four markets were purposively selected. Random sampling was used to select respondents using structured questionnaire alongside oral interview. The analytical tools used were descriptive statistics, marketing margin and multiple regression. Majority of the traders (71%) had marketing experience between 5 to 25 years. Analysis on marketing margin shows that the producer’s share in the price that the final consumer pays was 56%, the wholesaler receives 14% and the retailer gets 30%, while the total marketing margin in the complete distribution chain was 43%. Analysis on the effect of marketing costs on marketing margin using multiple regression reveals that commission paid to agents was significant at 1% for regional wholesalers and 5% for inter-regional wholesalers. Transportation cost had positive coefficients significant at 10% for regional wholesalers and 5% for inter-regional wholesalers. At the level of retailers, the commission and transport charges have insignificant effect and where they exhibited significant effect, they have negative t-values. The loading/un-loading cost, revenue charges and storage cost had insignificant coefficients and negative t-values. The study recommends provision of simple drying machine for processing onion into durable products, provision of efficient transport system, onion exportation to create competition, market access to reduce glut and enlightenment of market participants on joining cooperative societies for solving many of the marketing problems.

Analyzing the Seasonal Variations and Price Trends in Major Onion Markets of India

The study was conducted about to analyse the onion price trend, seasonality and correlation in major markets of larger onion producing states of India with a study period of twenty years for onion crops (2001 to 2020). These data were collected from various portals such as APEDA, Agmarknet, and NHB. The data collected were subjected to statistical analysis using different methods. Twenty years data was used to analyze the seasonal and irregular fluctuations in onion prices, the variability of onion prices in major states in India and to measure trend and estimate rates of change in onion price in major states of India. The co-efficient of quadratic trend (T2) found non-significant in all markets reveals no change in growth pattern of onion price in last two decades, which indicates that farmers were not benefited by rise in price; it is the effect of inflation factors only. On an average the onion prices in major markets of India was increased annually at the rate of 8.50 per cent during last two decades. The seasonality is prevailing throughout all markets of onion in India. The price indices were found more than 100 in the months of August to January and lower during February to July. The magnitude of price volatility was found the highest in Bhopal (88.25%) and the lowest in Mahuva (53.81%) market. Whereas, the magnitude of arrival volatility was found the highest in Mahuva (187.25%) and the lowest in Mumbai (31.97%) market. The monthly (>0.87) and yearly (>0.90) onion prices were found highly correlated among all the markets. As onion price are highly volatile, requires creation of storage capacity to meet specific requirement of humidity and temperature, and the Government should take immediate action to enhance export, when price falls drastically and allow the import, when price increase beyond certain level.

Enhancing Onion Supply Chain Using The Smart Contract Platform: A Meta-Analysis

In the ever-evolving landscape of global agricultural supply chains, ensuring traceability, transparency, and sustainability is paramount to guaranteeing food safety, combating fraud, and meeting consumer demands. The Philippine onion industry, a vital component of the nation's horticultural sector, grapples with challenges related to traceability and transparency that impact customer trust and economic sustainability. While the adoption of smart contract platforms has revolutionized traceability and transparency in various agricultural sectors worldwide, their potential in the Philippine onion market remains underutilized. This study employs a comprehensive meta-analysis approach to evaluate the existing traceability and transparency mechanisms within the Philippine onion industry, drawing insights from a diverse set of studies. The meta-analysis reveals a consistently positive impact of these mechanisms on traceability and transparency. The findings, supported by a range of studies, underscore the value of these mechanisms in improving product quality, supply chain efficiency, and transparency. The study further investigates the potential impact of smart contract platforms in enhancing traceability and transparency throughout the onion industry's supply chain. Meta-analysis results suggest that the adoption of smart contract platforms holds promise in furthering these objectives. Through automated record-keeping and real-time data sharing, smart contracts have the potential to address existing challenges related to data fragmentation and limited technological integration. Identifying barriers to smart contract platform adoption in the context of traceability and transparency, the study proposes a set of strategic initiatives and recommendations. These recommendations cater to various stakeholders, including government bodies, academic institutions, local authorities, onion farmers, and industry players, aiming to promote the widespread adoption of smart contract platforms. This study extends beyond the confines of the Philippine onion industry, offering valuable insights into the role of smart contract platforms in enhancing traceability, transparency, and sustainability within agricultural supply chains. As the world works towards achieving the Sustainable Development Goals of the United Nations, this research contributes to the realization of "Zero Hunger" and "Responsible Consumption and Production" by promoting transparent and sustainable supply chains. By bridging the gap in understanding the potential of smart contract platforms in enhancing traceability and transparency, this study paves the way for innovative solutions, inspiring trust, and fostering sustainable farming practices within the onion industry and, potentially, in similar sectors worldwide.

Profitability Analysis of Onion (Allium Cepa(L)) Marketing in Gusau Central Market, Zamfara State

The study analysed the profitability of onion marketing in Gusau central market, Zamfara State. Data for the study were obtained from primary sources via a simple ramdom sampling technique. 80 onion marketers registered with onion marketers association of Nigeria were selected for the study. Therefore, a total of 80 respondents were interviewed and a structured questionnaire was administered to the respondents. Analytical tools used to analyse the data were descriptive statistics, Marketing margin, rate of return ratio and net marketing margin.This study revealed that onion marketing was predominantly dominated by married males. With regards to marketing margin analysis the study revealed that onion marketing was profitable with a margin of N745/50kg and N425/50kg at peak and off-peak period were realised. The net marketing margin of N1170/50kg indicating high profit. The study recommended that there is need for onion marketer to create a more community base storage facility that would accommodate large number of onions and also serves as a measures to be taken to avoid the loss of onion at marketing stage. However, Onion marketer’s association leaders should be very active and partner with financial institutions so as to easily have access to loans at reduced interest rate. This would help the onion marketers to have more capital base and in turn improve their business and their living standard.

Analysis of Spatio-Temporal Behaviour of Arrivals and Prices in Major Onion Markets of India

Analysis of Spatio-Temporal Behaviour of Arrivals and Prices in Major Onion Markets of India

Marketing Constraints and Price Perspectives for Onion in Khost Province, Afghanistan

The study was undertaken in the three districts of Yaqubi and Sabari, Mando Zayi and Bak of Khost province, Afghanistan, with the aim of evaluating marketing constraints, marketable surplus, intermediaries, and consumer perceptions regarding the price of onions. Despite its substantial influence on the economy and people's livelihoods, Afghanistan's onion marketing system has gotten insufficient attention. Onion prices in Afghanistan were volatile, which has a huge influence on the economy and people's capacity to buy basic foods. Data was collected from 120 farmers, 120 consumers, 30 wholesalers, and 30 retailers across the province. The study's main constraints faced by farmers in marketing onions included the majority of farmers 71.70 percent agreed that storage facilities were perceived to be expensive. 87.5 percent of respondents strongly agree that the lack of storage facilities was a major issue. Price changes were the biggest issue for customers, as 84.20 percent of respondents agreed. Limited market access was cited as a problem by 71.70 percent of respondents. The main constraint for wholesalers was the absence of facilities for grading onions, with 60.70 Lack of storage facilities was another key obstacle, resulting in 63.30 percent and No organizations (Councils) being available; 86.70 percent was a similar result for retailers too. The average onion production per Jerib of land was found to be 2386.16 kg/Jerib. Only 9.96% of the onion yield was used for domestic consumption, leaving the producers with a marketable surplus of 90.03%. Fluctuations in onion prices throughout different seasons were primarily attributed to the absence of proper storage facilities. The study has indicated that consumers tend to perceive the selling price of onions during the off-season as significantly higher than its on-season average price. The average price of onions during the off-season was 66.33 Afghanis per kilogram, whereas it was 22.16 Afghanis during the on-season. This indicated a significant price difference between the two seasons.

Spatial price transmission in the onion markets of Bangladesh: An application of NARDL approach.

As the price of local onions is greatly impacted by the price of imported onions at these two levels of the supply chain, the goal of this study was to ascertain whether onion prices in Bangladesh are transmitted asymmetrically at the wholesale and retail levels. To analyze asymmetry, the study employed the nonlinear autoregressive distributed lag (NARDL) model in the short and long run using monthly time series data from January 2006 to December 2020. The NARDL model captures the effects of both positive and negative shocks in the short as well as in the long run. The empirical results from the NARDL indicate that the wholesale price of local onion shares a short-run relationship with the wholesale price of imported onion while the local retail price of onion shares a long-run relationship with the imported retail price of onion. In addition, the short-run impact of local wholesale and imported wholesale prices is asymmetric. Long-run evidence supports the existence of an asymmetric effect between the local and imported retail onion prices. Using the Pairwise Granger causality test, we examined the causal relationships between wholesale and retail prices. The direction of the casual relationship indicates that the wholesale and retail prices of imported onions lead to the wholesale and retail prices of local onions. A clear understanding of the onion market, how prices move between market actors, and its role in determining market price interaction could be gained by analyzing the asymmetric relationship between the local and imported onion prices. As a result, significant policy recommendations could be made to control the onion price in Bangladesh.

Spatial Market Integration, Price Transmission and Transaction Costs in Major Onion Markets of India

The price information is one of the prime objectives of marketing strategies, and the farmers are unable to determine the marketing strategies without knowing the price movements of the agricultural commodities. In this context, the study has examined the spatial price integration among four major onion markets using the threshold vector error correction model (TVECM) that takes into account transaction costs in the price adjustment process. Augmented Dickey–Fuller and Phillips–Perron tests for unit root suggest that the time series is I(1). The application of the Johansen cointegration technique supports the presence of long-run price association and equilibrium in all pairs of onion markets. The Granger Causality test unveils that Bengaluru Granger causes all the markets except Kolkata. The Hansen and Seo supreme Lagrange Multiplier ( SupLM) test of linearity suggests that non-linear TVECM with one threshold and two regimes is best fit for the underlying data for three pairs of markets. While the rest of the three pairs, the SupLM test rejects the null of linearity, therefore, linear vector error correction model (VECM) is estimated. Finally, VECM and TVECM results reveal that Mumbai and Bengaluru are dominant markets in price formation in rest of the markets. Against these findings, it is suggested that the prices should be stabilised in the dominant markets so that the price shocks are not transferred to other markets. The threshold parameter, which is analogous to transaction cost, reveals the high transaction costs between the selected markets pairs, especially Mumbai and Delhi. One of the reasons for the high transaction costs may be the inefficiencies in infrastructure and communication. While a more correct explanation for this difference can be attributed to the differences in marketing fees, taxes, commission charges, license fees, etc., across the spatially separated agricultural markets. JEL Codes: Q1, Q13, D4, C22, D23

Increasing the productivity of shallot planting and its impact on the agricultural market, West Java.

The main objective of this study is to increase the productivity of shallot planting and its impact on the agricultural market. This study analyzes the transmission of shallot prices at the Caringin Main Market (wholesale) level with shallot prices at the farmer (producer) level using quantitative analysis of the Asymmetric Error Correction Model (AECM). The results showed that long-term transmission with positive ECT coefficients and negative ECT showed the same and significant positive values. Positive ECT is 0.286909 and negative ECT is 0.289266, where when there is a price deviation above and below the average balance line of onion prices at the farmer level, it takes three weeks to adjust to the balance of changes in shallot prices. The onion market at the wholesale or parent market occurs asymmetric price transmission from the wholesale price level (Caringin Main Market) to production prices (at the farmer level). A significant t-value of one percent evidences this. Asymmetric price transmission can be caused by abuse of market power.

Testing Onion Market Integration in Pakistan

Spatial market integration of agricultural products has been widely used to indicate overall market performance [Faminow and Benson (1990)]. In spatially integrated markets, competition among arbitragers will ensure that a unique equilibrium is achieved where local prices in regional markets differ by no more than transportation and transaction costs. Information of spatial market integration, thus, provides indication of competitiveness, the effectiveness of arbitrage, and the efficiency of pricing [Sexton, et al. (1991)]. If price changes in one market are fully reflected in alternative market, these markets are said to be spatially integrated [Goodwin and Schroeder (1991)]. Prices in spatially integrated markets are determined simultaneously in various locations, and information of any change in price in one market is transmitted to other markets [Gonzalez-Rivera and Helfand (2001)]. Markets that are not integrated may convey inaccurate price signal that might distort producers marketing decisions and contribute to inefficient product movement [Goodwin and Schroeder (1991)], and traders may exploit the market and benefit at the cost of producers and consumers. In more integrated markets, farmers specialise in production activities in which they are comparatively proficient, consumers pay lower prices for purchased goods, and society is better able to reap increasing returns from technological innovations and economies of scale [Vollrath (2003)].

Economics of Production and Marketing of Small Onion in Coimbatore District

The study is based on the production and marketing of small onion in coimbatore district. Data were collected by individual questionnaire method from 40 formers and 14 middlemen in Devarayapuram village, Thondamuthur taluk, Coimbatore district, Tamil Nadu. The Cobb- Douglas production function was run to identify the significance of labour and capital in the yield of onion. The study identified that the major problems of the farmers is low level of prices, credit sales, rain and lack of government support during price fluctuations.

Empirical assessment of onion supply chain constraints in Bangladesh: A pre-covid to covid situation.

In Bangladesh, Covid-19 has wrecked devastation on people's livelihoods and economies. It began with supply chain disruptions affecting a variety of agricultural products, particularly perishable ones. Onion, the most consumed species in Bangladesh and Asia is also fallen into that category. The goal of this study was to shed light on the current onion supply chain as well as the constraints faced by the actors in Bangladesh's major onion-producing area markets (i.e., Pabna, Rajshahi, and Chapainawabganj). The extent to which pre-existing constraints on market actors of onion were discovered and distinguished in pre-covid to covid conditions. The backward supply chain analysis revealed that the local market seller supplied the majority of necessary farm inputs (i.e., seed, seedlings, and fertilizer). Wholesalers, commission agents (aratdars), local wholesalers (beparies), and retailers were all involved in forward connecting. Producers received roughly 71% of the retail price (0.76/kg), followed by retailers (BDT 2.07/kg), wholesalers (BDT 1.22/kg), commission agents (aratdars) (BDT 0.85/kg), and independent wholesalers (beparies) (BDT 0.36/kg). Moreover, a constraint factor index and econometric analysis were utilized to determine the most critical constraints and their influencing factors. Obstacles to onion production and commercialization ranged from moderate (66%) to severe (33.5%), with a few being fairly severe (0.5%). The paucity of high-quality seed, the cost and difficulty of timely transportation, and the market's inaccessibility to government intervention were all significant drawbacks to increased onion output. The primary impediments to onion marketing were a lack of or inability to receive marketing expertise, frequent demand fluctuations, and an insufficient storage facility for other market intermediaries. The findings of the study can assist in establishing a dynamic policy framework that includes procedure for expanding market infrastructure, rehabilitating current onion market actors through adequate training, assuring information abundance, and rapidly addressing market mishaps for ensuring sustainability.

딥러닝 기반 감성분석을 이용한 양파수급모형 구축

This study analyzed the effect of the sensitivity of news related to onions on producers' decision-making on cultivation areas and market supply and demand. We collected onion-related article data and derived the sentiment index through sentiment analysis using neural networkbased learning. We estimated the cultivation area function, including the sentiment index we made. We analyzed the impact of news sensitivity on the onion market by constructing an onion market supply and demand model. Then, we gave a sentiment index shock to the cultivation area to examine the impact on the onion market. We also explored the sensitivity analysis to emphasize the news in June, July, and August plays an important role in the supply side. To the best of our knowledge, our approach using sentiment index in the agricultural model is the first trial. Therefore, our study can introduce an approach to improve the accuracy of modeling for agriculture and apply it to the area of agricultural economics.

Major Constraints in Production and Marketing of Onion in Haryana

Onion is an inevitable item in all Indian kitchens. As onion is an important and obligatory item of consumption basket, fl uctuation in its prices will have great impact on food consumption pattern of the Indian consumers. The present study was conducted to identify the major constraints in the production and marketing of onion in Haryana. Ambala and Mewat districts were selected purposively based on the largest area under onion in the state. In total 200 onion growers were randomly selected for collecting the required information. Garrett’s ranking technique was used to analyze the results. The study revealed that the high labour cost was the major constraint in the production of onion in Ambala district followed by high incidence of pest and disease and viability of seed. As regards to major constraints reported by the respondents during the marketing of onion were frequent price fl uctuation, non-availability of storage facility and lack of awareness of BBY/government procurement (NAFED). Regarding the production of onion in Mewat district, major constraints observed were poor quality and inadequate underground water, high cost of onion seed, non availability of quality seed, etc. The study further found that the major constraints observed during the marketing of onion in Mewat district were distance market, non-availability of storage facility, high transportation cost. Adequate storage facility needs to be created enabling the producers to spread the sale throughout the year. Eff orts may be made to supply quality seeds and also to safeguard the producers against the low prices during the peak season.