Pune: The wholesale price of onions has dropped by ₹10 per kg due to an increase in supply across various market committees in Maharashtra. Currently, onion prices range between ₹15 to ₹25 per kg, causing concerns among farmers about potential losses this season. With onion cultivation increasing nationwide, farmers fear that excess supply, combined with export restrictions, could lead to further price declines in the coming weeks.
The rabi onion harvest has significantly increased in Pune, Nashik, Ahmednagar, and Solapur districts. The Chakan market alone has recorded a daily arrival of over 20,000 quintals of onions. As supply continues to rise, prices are expected to drop further, making it difficult for farmers to recover their production costs.
Increased Onion Cultivation:
Last year: 15.4 lakh hectares
This year: 17 lakh hectares (15% increase)
Key Producing States:
Higher cultivation has been reported in Madhya Pradesh, Karnataka, Rajasthan, Uttar Pradesh, West Bengal, and Andhra Pradesh, leading to an oversupply in the market.
Onion exporters and traders argue that unstable government policies are significantly affecting the market. "Export companies and traders in major onion markets like Nashik and Chakan are purchasing lesser quantities for exports, forcing farmers to sell their onions only in domestic markets. This is one of the reasons for the continuous price decline," said Prashant Gore Patil, an onion exporter from Chakan.
The key issues impacting exports include:
Unpredictable government policies on onion trade
Frequent export bans, limiting international trade opportunities
Higher export duties, discouraging large-scale exports
Lack of government incentives to support exports
Another major challenge for farmers is inadequate storage facilities. Since government-backed onion storage infrastructure is insufficient, farmers rush to sell their produce immediately after harvesting, leading to a surge in supply and price drops.
"There are no proper warehouses or onion storage facilities. The government has taken no concrete steps to support onion storage. As a result, farmers have no choice but to sell onions immediately after harvest, increasing supply in the market. With prices crashing, farmers are bound to suffer losses this season," said Vikram Shinde, an onion farmer.
