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Maharashtra onion prices fall to US$12 per 100 kg following supply surge

Onion prices in Maharashtra have declined following a rise in arrivals at major agricultural produce market committees over the past two weeks. Prices have dropped by ₹500 to ₹700 per quintal, bringing the average rate close to ₹1,000 per quintal, equivalent to approximately US$12 per 100 kg.

At the Lasalgaon APMC, onions are selling at a minimum of ₹500, a maximum of ₹1,485, and an average of ₹1,100 per quintal, translating to about US$6 to US$18 per 100 kg, with the average near US$13 per 100 kg. Farmers report losses of ₹600 to ₹700 per quintal.

Daily arrivals at Lasalgaon, including its sub-market, have reached 40,000 to 50,000 quintals. Increased cultivation across Nashik, Solapur, Ahilyanagar, and other districts, along with a 30 to 40 per cent rise in arrivals across Maharashtra, Gujarat, and Madhya Pradesh, has led to a higher supply relative to domestic and export demand.

Lasalgaon market committee chairman Dnyaneshwar Jagtap has submitted a memorandum to central and state authorities seeking measures to stabilise the market. He has called for reopening exports to Bangladesh by restoring the bank guarantee system and resuming border trade, alongside a defined export policy for destinations including the Philippines, Jordan, Europe, the U.S., and Australia. He has also requested procurement through NAFED under the price stabilisation fund and measures to reduce import duties in Sri Lanka.

Jagtap said, "The market is witnessing unprecedented arrivals, and farmers are being crushed by falling prices. When supply has increased across three major onion-producing states, it is the government's responsibility to intervene. Exports to Bangladesh must be resumed immediately by restoring bank guarantees, and NAFED procurement should begin without delay. Unless decisive steps are taken at the Centre and state level, onion growers will be pushed into severe economic distress."

In the Nashik district, maximum prices fell by ₹1,151 per quintal during January, while average prices dropped by around ₹770 per quintal. Reported farmer losses for the month are estimated at ₹269 crore.

Bharat Dighole of the Maharashtra State Onion Growers Association said, "The cost of onion production is about ₹1,800 per quintal. When market prices fall to ₹1,000 or less, farmers cannot even recover basic costs. Bringing onions to the market itself becomes a loss-making exercise. The government must announce an immediate subsidy of at least ₹500 per quintal to save farmers from complete ruin."

Grower Tukaram Bhambhurde added, "We invested heavily in cultivation, hoping prices would remain stable. But the sudden crash has left us helpless. At ₹900- ₹1,000 per quintal, we are selling at a loss. If exports are not resumed and government procurement does not start immediately, many farmers will be forced into debt and distress."

Source: Hindustan Times

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