Onion prices have fallen sharply in Belagavi, India, following a large influx of onions from neighbouring Maharashtra. Retail prices dropped to between US$0.18 and US$0.24 per kilogram, leaving local farmers facing heavy losses. In response, the Agricultural Produce Market Committee (APMC) in Belagavi has sent a team to Maharashtra to assess the market situation.
According to traders at the APMC yard, the new onion harvest season in Maharashtra begins in November and December. Ahead of that, traders there are offloading stored onions before prices decline further with the arrival of the new crop. The large volume of old stock entering Karnataka from Maharashtra has caused a supply glut, pushing prices down in Belagavi.
Sources at the APMC office reported that around 70 truckloads of onions entered the Belagavi market on Saturday. Good-quality onions fetched up to US$22.80 per 100 kilograms (Rs 1,900 per quintal), while lower-quality lots sold for as low as US$9.60 per 100 kilograms (Rs 800 per quintal) in the wholesale market.
At the same time, the onion harvest has already started in parts of Karnataka, adding further pressure on prices. On Saturday, about 70 truckloads of new onions and 10 truckloads of older local stock arrived at the Belagavi market. However, recent heavy rains have affected the new crop's quality, leading to lower prices ranging from US$2.40 to US$14.40 per 100 kilograms (Rs 200–1,200 per quintal). Onions from Maharashtra continued to command slightly higher prices due to better quality.
"The onion price dropped sharply due to oversupply from both Karnataka and Maharashtra. Considering the sudden inflow from Maharashtra, we sent a team there to assess the situation and prepare measures that could help our farmers in the coming weeks," said Vishwanath Reddy, secretary of APMC Belagavi.
Market observers expect price pressure to continue until the arrival of the new crop from Maharashtra stabilises supply and demand in the region.
Source: The Times of India
