Gujarat onion farmers are facing huge losses; they complain that when they reach the market yard with their crops, prices are down and there is no mechanism to support them. One farmer complained that traders in the market are offering Rs 7.50 to 9.00 per kilo for onions, whereas the production cost is almost double.
"Prices in the domestic market have fallen for two reasons, the late kharif crop harvest is brought in large quantities in the market- against the demand, the supply is very high. The other reason is that this year even Madhya Pradesh and Rajasthan are expecting high production, so this time they may import less quantity from Gujarat, that too is creating pressure on prices in the Gujarat market," said Ghanshyam Patel, Chairman of Mahuva Agricultural Produce Market Committee (APMC).
Maharashtra's Lasalgaon is known as the onion capital of India, while Mahuva is called the capital of Gujarat in terms of onion production. Farmers of Bhavnagar district sow onion in the highest quantity in the state.
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Source: in.investing.com