Onion prices have declined sharply in the Lasalgaon Agricultural Produce Market Committee, one of Asia's main onion trading centres, placing pressure on producing farmers. Compared with last week, prices have fallen by around 600 rupees per quintal, about US$7, while over the past fifteen days, prices are reported to be down by as much as 1,000 rupees, about US$12.
Market participants attribute the price movement to higher arrivals of red onions across major markets in India, including Lasalgaon, which has increased supply pressure. Export volumes have remained limited, partly due to ongoing violence in Bangladesh. At the same time, onions from China and Pakistan are available at lower prices in markets across Arab countries, reducing demand for Indian products.
On Monday, 5 January, morning arrivals at Lasalgaon reached around 22,000 quintals of red onions, transported by approximately 1,200 vehicles. On that day, onions recorded a maximum price of 2,109 rupees per quintal, around US$25, a minimum of 500 rupees, about US$6, and an average of 1,600 rupees per quintal, around US$19. These price levels represent a decline from recent weeks and have reduced returns for growers supplying the market.
Farmers in Nashik district are estimated to have incurred losses of roughly 175 to 200 crore rupees over the past fifteen days, equivalent to about US$21 million to US$24 million. Market observers note that if the current pricing trend continues, red onion production, similar to summer onion production, may become less economically viable.
Farmer groups have called for intervention from state and central authorities. Their demands include measures aimed at increasing onion exports and steps to stabilise domestic prices. They have indicated that without policy action to address supply and export constraints, income pressure at the farm level may persist.
The situation is being monitored by farmers, traders, and market analysts, who are assessing the implications of current arrivals, export limitations, and international competition on the coming trading period.
Source: Lokshahi
