Steep decline in onion prices worries farmers

Falling onion prices in Nashik district have created panic among the farmers.The wholesale onion prices were around Rs1,600 per quintal in October.

The prices have come down to Rs 300 per quintal within two months at the Agriculture Produce Market Committees (APMC) in the district. Onion was sold at Rs 5 per kg in retail market on Friday.

Nashik district is the major onion market in the country. The district produces about 12 lakh metric tonne (MT) onions per year (including all three crops - Kharif ,Rangada and Rabi). Due to delay in cultivation of Kharif crop and damage of onions due to heavy rainfall in other states, onion had become costlier in the month of October.

But after the arrival of Kharif crop in November, prices came down to Rs1,000 per quintal at the APMCs in the district. The wholesale onion prices in the district APMCs slid to Rs 275-350 per quintal on Friday. This week the wholesale onion prices came down to Rs 350-450 per quintal.

The wholesale prices are likely to come down to around Rs 200-250 per quintal in the next couple of weeks. Storing onions is also not possible as it is a perishable commodity. Hence, onion-growers have no alternative but to sell onions at the present market rates.

Speking to Business Standard Rajendra Dhokle, director, Lasalgaon Agriculture Produce Market Committee said, "Due to bumper onion crop in the distrct the gap between supply and demand has increased. The arrival is more as compared to the demand in the APMCs.The state government should take some measures to control the onion prices, so that farmers are not affected."