Wholesale onion prices in India declined at the Lasalgaon Agriculture Produce Market Committee (APMC) in Nashik, with late kharif onions falling by around 30 per cent over the past month.
Prices dropped from Rs1,100 (US$13) per quintal to Rs775 (US$9) per quintal on April 11, reaching a one-year low. An APMC official attributed the decline to increased arrivals and lower demand. "Reduced demand from international markets has also added pressure on the wholesale prices," the official said.
Summer onions are currently trading at around Rs1,100 (US$13) per quintal at the same market. Growers, however, report that current price levels remain below production costs, which are estimated at around Rs1,800 (US$22) per quintal.
Bharat Dighole, president of the Maharashtra Onion Growers Association, said prices have declined across major markets. "While the cost of onion production is around Rs 1,800 per quintal, farmers are being forced to sell onions in the price range of Rs 500 to Rs 800 per quintal. They are incurring huge financial losses, but the state govt has failed to take cognizance of the situation," he said.
He added that government intervention typically occurs when prices rise. "While the cost of onion production is around Rs 1,800 per quintal, farmers are being forced to sell onions in the price range of Rs 500 to Rs 800 per quintal. They are incurring huge financial losses, but the state govt has failed to take cognizance of the situation," Dighole said.
He called for measures to support growers who have sold produce at lower prices over recent months, including a proposed compensation of Rs1,500 (US$18) per quintal.
Source: The Times Of India
