Geopolitical Tensions Hit Karnataka Farmers as Vegetable Prices Plummet

Geopolitical Tensions Trigger Agricultural Crisis in Karnataka

Geopolitical tensions between Iran and Israel-US are beginning to significantly impact Karnataka's agricultural markets, with prices of onions and other vegetables falling sharply, pushing farmers into severe distress. At the Bengaluru APMC Yard, traders report a widening gap between supply and demand, as large volumes of produce arrive daily but buyer interest weakens, leading to steep price declines from previously stable levels.

Onion Prices Hit Hardest

Onions, a major cash crop in north Karnataka and neighbouring states, have been among the worst affected. Uday Kumar, a wholesale onion and potato trader, stated, "Good-quality onions that earlier fetched between Rs 1,600 and Rs 2,000 per quintal are now selling at barely Rs 1,000-1,200, while medium and small varieties have seen even sharper declines." Farmers are now realising as little as Rs 3-6 per kg, making it difficult to recover input and transport costs. In some cases, traders noted that the price of an empty gunny sack—around Rs 18-20—exceeds the value of the onions it holds, forcing farmers to offload produce at throwaway rates.

Multiple Factors Behind the Slump

According to KC Doreswamy, secretary of the APMC, multiple factors are contributing to the slump. "A shortage of commercial LPG cylinders has significantly affected the hotel and catering industry, a major bulk consumer of vegetables. With many establishments scaling down operations, procurement volumes have dropped drastically," he explained. He added that good harvests in states such as Telangana, Odisha, and West Bengal have reduced interstate demand for Karnataka's produce, creating a glut in local markets. "There is excess produce and less demand," he summarised.

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Tomato and Other Vegetable Prices Also Fall

Tomato prices have similarly fallen sharply. Muniyappa Reddy, a trader at KR Market, said, "Tomatoes that sold at Rs 500-600 per 15 kg box earlier are now being auctioned at Rs 100-200." Retail prices have dropped to around Rs 8-10 per kg. Other vegetables, including beans, capsicum, and carrots, have seen prices fall by nearly 50%, while brinjal, cabbage, beetroot, okra, and potatoes are retailing at Rs 20-30 per kg.

Farmers Bear the Brunt

Farmers from districts such as Koppal, Ballari, and Vijayapura, as well as neighbouring states, are bearing the brunt of this crisis. P Govindharaj, a trader at Kalasipalya mandi, observed, "The emotional and financial strain is evident at market yards, where several farmers are left with little choice but to sell at distress prices to avoid further losses."