A constant slide in wholesale prices of onion in the markets of Maharashtra has caused distress among growers who fear further slide in the coming months. The dip comes even as the sowing dip due to moisture stress in the area. One of the main reasons, farmers say is due to the export ban put on the commodity by the central government on December 7. At Lasalgaon’s wholesale market in Nashik district of Maharashtra, onion prices have touched Rs 1,170/quintal as against the Rs 2,300-2,200/quintal at the start of the month. On January 25, the last date when the auction took place in the market before the start of the long weekend, the average price touched Rs 1,170 A day earlier, prices had touched the month’s low of Rs 1,150 Traders fear further price slide when the markets reopen for auction on Monday. This price slide comes even as the forecast of the crop remains grim in the year due to moisture stress in the major growing areas of India. Farmers have reported 1.66 lakh hectares (lh) of late kharif and 7.55 lh of rabi crop this year - a sharp drop from 1.86 lh and 12.26 lh, respectively, of last year. Most onion growers in Maharashtra- the country's onion belt- have taken crops like maize to tide over the moisture stress in their area. An erratic monsoon has seen rabi sowing dip considerably in the country. Retail prices of the kitchen staple across the country are now in the range of Rs 25-33/kg, as against Rs 35-40/kg a month ago. Consumers heaved a sigh of relief at the sharp price correction, but this comes at the cost of increased losses to growers. Onion growers have seen multiple waves of crop losses due to unseasonal losses and lower-than-expected yields. One of the major reasons for this lower than expected prices is the ban on export, which has seen onion farmers resorting to panic offloading of their produce. “The country’s domestic market is not capable of absorbing the huge quantity that is arriving in the markets- without some exports prices will dip further,” said a trader from Nashik. Exports of pyaaz was banned till March 31, 2024, on December 7 – a measure to control the then bullish price trend. Bharat Dighole, president of the Onion Growers Association, talked about the increased losses this decision has caused the farmers. “On one hand, the cost of production is on the rise, but prices are low. We are not able to realize the cost of production,” he said. Dighole hinted at action by the growers if the export ban is not lifted immediately.
