A temporary shutdown of eateries linked to LPG shortages has accelerated a decline in onion prices across Karnataka, with rates falling below production costs due to oversupply and reduced demand.
Onion prices have dropped to Rs 500–Rs 1,000 per quintal (US$6.00–US$12.00), compared with earlier wholesale levels of Rs 1,200–Rs 2,000 (US$14.40–US$24.00). Retail prices have also declined, with 8–10 kg selling for Rs 100 (US$1.20).
Farmers in producing districts, including Vijayapura, Chitradurga, Gadag, Ballari, Koppal, Dharwad, Belagavi, Bagalkot, Haveri, and Chikkaballapur, reported distress sales, with Chitradurga among the most affected.
Srirama Reddy, president of the Dasanapura APMC Merchants Association, said demand from the food service sector has declined. "Some 30% of hotels temporarily closed their business. Besides, the state recorded higher production this year due to good rainfall, leading to oversupply compared to previous seasons," he said.
He added that price corrections have also affected premium produce. "Top quality onions were available at Rs 20 per kg, but now it has fallen to Rs 10. Farmers and traders are suffering heavy losses. If consumption increases when prices are low, it would help stabilise the market," Reddy said.
Traders indicated that the impact has extended to other vegetables. Shiva Kumar, an APMC trader, said, "Prices of other vegetables have also dropped."
Export-oriented Bengaluru rose onion has also declined, with prices at Rs 600–Rs 800 per quintal (US$7.20–US$9.60), affecting growers in Bengaluru Rural, Chikkaballapur, and Kolar districts.
Farmer Madhu B from Byraganahalli said, "We harvested 400 bags of rose onion for export to Gulf countries via Chennai. But after the conflict in Iran, prices crashed, so I stored them in the field." He noted that storage is limited as produce begins to deteriorate after a month.
K Sudhakar, Chikkaballapur MP, has called for government intervention, including Market Intervention Scheme procurement and the exploration of alternative export markets in Europe, North America, Japan, and South Korea.
Source: The Times Of India
