The Centre’s failure to act on time with regard to excess production of onion has resulted in prices of the tuber hitting rock bottom and farmers facing huge losses in turn.
At 2.03 lakh metric tonne, the country has seen record production of onion in April this year, as against the average yield of 1.30 to 1.40 lakh MT. Out of the total produce, around 25 MT of onion is likely to remain surplus only. Not surprisingly, there is a sharp decline in onion prices across the country. So much so, farmers are selling onion at throwaway prices for fear of it rotting. Even at APMC, Vashi, onion is being sold at a wholesale rate of Rs 7 to Rs 9.50 per kg while the retail rate is Rs 10 to Rs 15 per kg. Retail prices are expected to fall further in the coming days.
In a telling example of the plight of onion growers, a farmer in Nashik on Tuesday sold onion for a paltry Rs 5 per kg at the Pimpalgaon Baswant APMC. Onion farmers have been unable to recover even cost of production which is nearly Rs 650 to Rs 700 per quintal even as market rates have plummeted to Rs 550 to Rs 600 per quintal.
Nanasaheb Patil, director, National Agricultural Cooperative Marketing Federation of India (NAFED), said, “Farmers are facing double losses this year. In five months since reaping the harvest, 25 per cent loss in quantity has already been reported due to decomposition. In between, many farmers suffered losses due to floods in Nashik. To add to their woes, there has been deterioration in prices. Onion, which was being sold for Rs 800 to 900 per quintal before the rains, is now being sold at Rs 500 to Rs 600 per quintal.”
Officials informed this was the first year when farmers have incurred losses in all three seasons of the onion harvest. In Maharashtra, onion is grown during the early Kharif, late Kharif, and Rabi seasons. This is the first year when all three crops have sold below cost of production.
Putting the blame squarely on the Centre, Mr Patil said, “In October last year, we had informed the Centre that onion production would rise considerably in 2016 due to increase in yield area and favourable weather. To deal with the excess, we had demanded that Minimum Export Price (MEP) be reduced immediately. But the Centre acted slowly and reduced MEP only a couple of months ago. In addition to this, the Centre did not give subsidy on onion export.”
Mr Patil added that they had demanded that the Centre procure onion in large quantities and export as much of it as possible, however, both proposals were ignored.
Vegetables become cheap too Due to increase in production in Western and North Maharashtra, the APMC market at Vashi has received a good supply of vegetables in last couple of days. The wholesale rates of all major vegetables have come down. The rates of cabbage, colliflower, tomato, gourd, ladyfinger, cluster beans and peas have become cheaper. Except ladies finger and tomato, all vegetables are being sold under '10 per kg. But it is to be seen whether retail vendors will pass on the benefit to the people, said APMC sources.
