The wholesale price of onions in Maharashtra, India, has decreased by approximately $0.12 per kg due to an increase in supply across various market committees. Current prices range from $0.18 to $0.30 per kg, raising concerns among farmers about potential losses. With nationwide onion cultivation on the rise, farmers fear that excess supply, combined with export restrictions, could lead to further price declines in the coming weeks.
The rabi onion harvest has expanded in Pune, Nashik, Ahmednagar, and Solapur districts. The Chakan market alone has recorded a daily arrival of over 20,000 quintals of onions. As supply continues to rise, prices are expected to drop further, complicating farmers' efforts to recover production costs.
Increased onion cultivation is noted with last year's 1,540,000 hectares rising to 1,700,000 hectares this year, marking a 15% increase. Key producing states such as Madhya Pradesh, Karnataka, Rajasthan, Uttar Pradesh, West Bengal, and Andhra Pradesh report higher cultivation, contributing to market oversupply.
Exporters and traders indicate that unstable government policies are affecting the market. "Export companies and traders in major onion markets like Nashik and Chakan are purchasing lesser quantities for exports, forcing farmers to sell their onions only in domestic markets. This is one of the reasons for the continuous price decline," said Prashant Gore Patil, an onion exporter from Chakan.
Key issues impacting exports include unpredictable government policies on onion trade, frequent export bans limiting international trade opportunities, higher export duties discouraging large-scale exports, and a lack of government incentives to support exports.
Inadequate storage facilities present another challenge for farmers. The government-backed onion storage infrastructure is insufficient, prompting farmers to sell their produce immediately after harvesting, which increases supply and leads to price drops. "There are no proper warehouses or onion storage facilities. The government has taken no concrete steps to support onion storage. As a result, farmers have no choice but to sell onions immediately after harvest, increasing supply in the market. With prices crashing, farmers are bound to suffer losses this season," said Vikram Shinde, an onion farmer.
Source: The Bridge Chronicle
