Onion Price Drop Worries Farmers, Demand Rs 1,500/Quintal Grant
Onion Price Drop Worries Farmers, Demand Grant

The continuous drop in the wholesale price of onions has kept farmers in Nashik worried as they are unable to recover production costs and are incurring heavy financial losses. The Maharashtra Onion Farmers' Association has demanded that the state government immediately provide a grant of Rs 1,500 per quintal to farmers who have sold their produce at lower rates over the past four to five months. The association has also warned of launching a state-wide agitation if immediate relief is not provided.

Production Cost vs Selling Price

According to farmers, the cost of onion production is around Rs 1,800 per quintal, and they incur heavy losses when prices fall below this level. Currently, the average wholesale price of onions at Lasalgaon APMC is around Rs 1,000 per quintal. However, only a small quantity is sold in the Rs 1,000–Rs 1,500 range, while nearly 80% of the produce is being sold below Rs 800 per quintal, resulting in significant losses.

Association President's Statement

Bharat Dighole, president of the association, said that although the average price is around Rs 1,000 per quintal across APMCs, most arrivals are traded between Rs 400 and Rs 900 per quintal. “Farmers are unable to recover even their production costs,” he said. Market sources said around 1 lakh quintals of onions are traded daily across 13 APMCs in the district. Dighole reiterated the demand for a Rs 1,500 per quintal grant and warned of protests if the government fails to act.

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Export Challenges

Vikas Singh, vice-president of the Horticulture Produce Exporters Association of India, said onion exports have been hit due to geopolitical tensions between Iran and the US. “This has disrupted the export market, reduced demand and contributed to falling prices in domestic markets,” Singh said.

Current Market Scenario

At Lasalgaon APMC, the average onion price on Monday was Rs 1,100 per quintal, with around 15,000 quintals traded. The minimum and maximum prices stood at Rs 500 and Rs 1,600 per quintal, respectively. At Pimpalgaon APMC, around 35,000 quintals were auctioned, with an average price of Rs 1,100 per quintal, and prices ranging from Rs 300 to Rs 2,300 per quintal.

Political Reaction

NCP (SP) leader and MLA Rohit Pawar on Monday criticised the BJP-led Mahayuti government for its alleged apathy towards onion farmers affected by falling prices. In a post on social media platform X, Pawar said he will visit Lasalgaon APMC on May 18 to interact with farmers and listen to their issues.

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