Belagavi APMC Vegetable Market Sees Sharp Price Collapse
In a severe blow to the agricultural sector, vegetable prices have crashed at the Belagavi Agricultural Produce Market Committee (APMC) market, compelling farmers and traders to abandon large quantities of unsold produce in the yard. This distressing situation stems from a dramatic fall in demand, driven by multiple economic and geopolitical factors that have disrupted the local market dynamics.
Key Factors Behind the Demand Slump
The sharp decline in vegetable consumption is primarily attributed to hotel closures and reduced operations due to higher commercial gas cylinder prices, which have led many establishments to either scale back their menus or shut down entirely. This has resulted in a staggering 75% drop in demand from hotels, a major buyer in the region. Additionally, ongoing tensions in West Asia and a decline in exports to Goa have further exacerbated the supply-demand imbalance, with vegetable arrivals from Belagavi district and neighbouring Maharashtra continuing unabated despite dwindling trade over the past two to three weeks.
Festival Boost Fades, Leaving Market in Disarray
The market had experienced a brief period of stability during the Ugadi and Ramzan festivals, but prices plummeted sharply thereafter. The once-bustling wholesale vegetable yard at Belagavi APMC now lies deserted, with the buying frenzy completely evaporated. Farmers are left with no choice but to discard radishes, tomatoes, carrots, cabbage, and various greens, as supply far exceeds the meager demand.
Onion Exports Halt, Prices Dive Drastically
According to APMC officials, onion exports have come to a complete standstill, causing prices to fall drastically. Previously, onions were being exported in large quantities to destinations like Kuwait and Dubai. Officials warn that there is little chance of a price recovery until exports resume. In the last two days alone, 11,000 quintals of red onions have arrived at the Belagavi market from neighbouring states, flooding the wholesale market where prices now range from a minimum of 500 to 1,500 per quintal, down from 2,500-3,500 per quintal before the conflict-related disruptions.
Farmers Face Dire Financial Strains
Approximately 20,000 farmers cultivate onions across 4,000 hectares in areas such as Ramdurg, Savadatti, Gokak, Hukkeri, Chikodi, and Athani. With the harvest completed, they are now trapped in a dilemma: they cannot send their produce to market due to the price crash, nor can they afford to store it. The cost of growing onions is estimated at Rs 20,000 to Rs 30,000 per acre, with a good yield yielding 5-8 tonnes per acre. However, the current market conditions render these investments nearly worthless.
Calls for Government Intervention
Tyagaraja Kadam, a functionary of the Raita Sangha, has urged both state and central governments to intervene by fixing a support price of Rs 4,000 per quintal for onions and purchasing the surplus. Currently, vegetable purchases are limited to events like weddings and fairs, and farmers report that transportation costs, along with expenses for seeds, fertiliser, and irrigation, are eroding any potential profits. Farmer leaders emphasize that the growing gap between demand and supply necessitates immediate government action to rescue the agricultural community from this crisis.
