Maha onion growers in distress as avg. price dips to ₹1,000 per quintal

Onion prices in Maharashtra have plummeted due to increased arrivals, causing distress among farmers. Urgent government intervention is requested to stabilize prices.

A sharp rise in onion arrivals at major agricultural produce market committees (APMCs) across Maharashtra over the past two weeks has triggered a steep fall in prices, pushing rates down by ₹500 to ₹700 per quintal and bringing the average price close to ₹1,000 per quintal. The sudden slump has caused widespread distress among onion growers. In response, Lasalgaon market committee chairman Dnyaneshwar Jagtap has urged both central and state governments to implement urgent measures to stabilise prices and prevent further financial losses to farmers.

Lasalgaon market committee chairman Dnyaneshwar Jagtap has urged both central and state governments to implement urgent measures to stabilise prices. (FILE)

Jagtap, in a memorandum submitted to the Centre and the Maharashtra government a couple of days ago, has called for immediate export and procurement support. He has stressed the need to reopen onion exports to Bangladesh by restoring the bank guarantee system and opening border trade. He has also urged the Centre to frame a clear export policy to boost shipments to the Philippines, Jordan, Europe, USA and Australia, while directing the NAFED to begin immediate onion procurement under the price stabilisation fund. Jagtap has further demanded efforts to reduce import duties on onions in Sri Lanka and an increase in export incentives and tax refunds for exporters.

The memorandum has been submitted to union commerce and industries minister Piyush Goyal, finance minister Nirmala Sitharaman, external affairs minister S Jaishankar, agriculture minister Shivraj Singh Chouhan, Maharashtra chief minister Devendra Fadnavis, deputy chief ministers Eknath Shinde and Sunetra Pawar, food and civil supplies minister Chhagan Bhujbal, agriculture minister Dattatraya Bharane, and Dindori Lok Sabha MP Bhaskar Bhagare.

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.”

Daily arrivals at Lasalgaon market (both main and sub) have risen to nearly 40,000 to 50,000 quintals. This year has seen a significant increase in onion cultivation in Nashik, Solapur, Ahilyanagar and other districts. Additionally, onion arrivals across Maharashtra, Gujarat and Madhya Pradesh have risen by 30 to 40%, causing a serious mismatch between supply and domestic as well as international demand. The oversupply has led to a sharp collapse in market prices. At the Lasalgaon APMC, onions are currently selling at a minimum of ₹500; a maximum of ₹1,485; and an average of ₹1,100 per quintal; forcing farmers to absorb losses ranging from ₹600 to ₹700 per quintal.

Amid growing farmer anger over falling prices, some relief was reported on Monday at the Nandgaon APMC where red onion prices rose by nearly ₹200 per quintal. Premium quality onions fetched between ₹1,200 and ₹1,250 per quintal, offering temporary respite to growers.

Despite this brief uptick, the overall outlook remains bleak. In Nashik district alone, onion prices recorded a drastic fall between January 1 and January 31, with maximum prices declining by as much as ₹1,151 per quintal and average prices dropping by around ₹770 per quintal. The cumulative impact has been severe, with estimated farmer losses of nearly ₹269 crore during January.

Bharat Dighole, president 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.”

Tukaram Bhambhurde from Nashik district, one of the affected onion growers, said, “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.”