Rain clouds rolled over Maharashtra's onion belt, followed by war winds from West Asia. Prices collapsed, crops rotted, and farmers counted losses in rupees, selling tears by the quintal. Across Nashik, Solapur, and Chhatrapati Sambhajinagar, onion growers are reaping a bitter harvest this season as wholesale prices at agriculture produce market committees (APMCs) have crashed far below production costs.
Farmers Share Their Plight
Prakash Galadhar, a farmer from Paithan taluka in Chhatrapati Sambhajinagar, hauled 1,262 kg of onions to market last week. After deductions for labour, loading, and transport, his final balance showed he owed the trader Re 1. Similarly, Jitendra Solanke from Satana APMC in Nashik district brought 30 quintals hoping to recover at least part of his investment. Traders initially offered Rs 50 a quintal, but after his protest, the rate climbed to Rs 175 a quintal, or Rs 1.75 per kg.
Still, numbers did not add up. "I spent Rs 1,200 per quintal to grow the crop. After sale, labour, and transport charges, only Rs 500 remained. The loss mounted to Rs 36,000," Solanke said. Input costs have risen sharply for seeds, fertilisers, diesel, mechanised farming, and labour, while market prices have sunk into the mud.
"We sell onions at Rs 4 to Rs 5 per kg while production cost is over Rs 12," said Bhausaheb Jagtap, a farmer from Pune district. "After paying everybody, nothing is left."
Price Trends and Market Data
Prices have been sliding since February this year. At Lasalgaon APMC in Nashik, the country's largest onion wholesale market and benchmark for national rates, the kitchen staple is currently selling between Rs 400 and Rs 1,600 a quintal. Nearly 80% of arrivals fetch less than Rs 800 a quintal. In Solapur APMC, arrivals on May 13 touched 14,756 quintals, with prices ranging from Rs 100 to Rs 1,700 a quintal, or Rs 1 to Rs 17 per kg. A year ago, onions sold there for Rs 2,500 to Rs 3,000 a quintal.
Growers say the break-even price stands near Rs 18 per kg. "Losses are massive because nearly 80% of onions are selling between Rs 400 and Rs 800 per quintal," said Bharat Dighole, president of the Maharashtra Onion Growers' Association.
Reasons for the Crash
Market experts blame a perfect storm: bumper arrivals, weak domestic demand, export disruptions, and rain-damaged produce flooding mandis. "Geopolitical tensions involving Iran, the US, and Israel disrupted export markets and reduced overseas demand," said Vikas Singh, vice president of the Horticulture Produce Exporters' Association of India.
Unseasonal rain between March 19 and 21 added another blow. Showers lashed Nashik district just as the summer onion harvest began, damaging ready crop and triggering rot during storage. "Only 30% of produce was grade-1 quality," said Prakash Jadhav, head of the onion department at Solapur APMC. "Rain damage and long storage hurt quality."
Farmers' Demands
Farmers are demanding that onions be brought under minimum support price (MSP), pegged at Rs 3,500 a quintal. Growers' groups want the Maharashtra government to compensate farmers by Rs 1,500 a quintal for distress sales. (Inputs from Prasad Joshi)
