Onion growers in Maharashtra are calling for government intervention following a decline in farm gate prices, linked to reduced export demand and increased domestic supply.
Prices in wholesale markets have fallen to Rs 300 to Rs 800 per quintal (US$3.60 to US$9.60 per 100 kg), compared to an estimated production cost of around Rs 1,800 per quintal (US$21.60 per 100 kg). At these levels, growers report that harvesting and transport costs are not covered.
According to Bharat Dighole of the Maharashtra State Onion Growers Farmers Organisation, the price decline has led to distress sales and, in some cases, disposal of produce due to limited market returns.
Farmer groups have requested the activation of the Market Intervention Scheme (MIS), with procurement centres established at the subdistrict level. Under the scheme, government procurement is intended to support prices and reduce selling pressure during periods of oversupply. MIS is implemented at the request of state authorities, who share part of the financial burden, and is triggered when production increases by at least 10 per cent or market prices fall by at least 10 per cent compared to a normal year.
Growers have also requested that minimum purchase prices reflect production costs and that price deficiency payments be transferred directly to farmers.
The current market situation is linked to reduced export activity. Shipments to West Asia have been affected, while exports to Bangladesh have slowed. Traders indicate that changes in export policy have affected buyer confidence.
With export volumes reduced, more products have remained in the domestic market, increasing supply and contributing to lower prices.
The combination of supply growth and weaker export demand has affected price levels during the current marketing period.
Source: DownToEarth
