Onion prices plummet, farmers unable to recover cost price

With surplus supply, onion prices have plummeted to Rs 200 per quintal in major onion markets in Nashik, leaving marginal farmers in tears as they are unable to recover their cost price amounting to Rs 1,000 per quintal.

Sources said consumers might be able to enjoy the low rates till Diwali. During Diwali, onions will again be in short supply, with rates hovering around Rs 2,000 to Rs 5,000 per quintal, sources said.

Chandwad Agriculture Produce Market Committee (APMC) chairman Dr Atmaram Kumbharde said that the glut in supply was because farmers did not have the facilities to store the onions. “The current onions sold in the market is of unhal variety, which can be stored for several months. However marginal farmers don’t have the required onion chawls or godowns to store them. If they store the crop, they can gradually bring it to the market and prices will also be stable,” he said.

Currently, the onion is being bought by merchants at rock-bottom prices, who then store them in their massive godowns. Banking on their strong financial strength, the merchants will gradually bring out the onion in the market by Diwali, sources said.

Shetkari Sanghatna leader and farmer, Sandubhai Shaikh, said the government should step in and compensate farmers for the difference in cost and selling prices. Mr Shaikh also suggested that the government should follow the Swaminathan Committee’s recommendations on crops.

In Lasalgaon APMC, the rates for onion per quintal on Saturday were maximum Rs 816, minimum Rs 300 and average of Rs 730. The onion harvest this season is only from areas along the riverbanks of Godavari, Girna and Tapi rivers.