Onion Price Plunge Below Rs 1,000 Per Quintal Sparks Farmer Distress in Lasalgaon
In a severe blow to agricultural producers, wholesale onion prices at Lasalgaon APMC, India's largest wholesale onion market located in Nashik, have dramatically fallen below the critical threshold of Rs 1,000 per quintal. This sharp decline has plunged farmers into substantial financial losses, with current market rates remaining far below the cost of production.
Steep Price Decline Over Past Month
Over the past thirty days, average wholesale onion prices across district APMCs have witnessed a significant downward spiral, dropping from approximately Rs 1,500 per quintal to just Rs 975 per quintal. This represents a reduction of more than thirty percent in farmer income from onion sales during this period.
On Wednesday, Lasalgaon APMC recorded an average price of Rs 975 per quintal, marking the lowest price point in six months. Although prices experienced a marginal recovery to Rs 1,075 per quintal on Thursday, this slight increase provides little relief to struggling farmers facing mounting losses.
Production Costs Far Exceed Market Prices
According to detailed accounts from onion growers, the actual cost of production for onions stands at approximately Rs 1,800 per quintal. This substantial gap between production costs and current market prices has created an unsustainable financial situation for agricultural producers.
"Farmers incur heavy losses if they receive prices below the production cost," explained concerned growers. "At current market rates, these losses are accumulating rapidly and creating severe financial distress for farming families."
Government Intervention and Policy Demands
In response to this growing crisis, State Food and Civil Supplies Minister Chhagan Bhujbal has taken decisive action by writing to Chief Minister Devendra Fadnavis. The minister has formally requested a special grant of Rs 500 per quintal for farmers who have been forced to sell their onion crops at these devastatingly low prices.
Beyond immediate financial relief, Minister Bhujbal has emphasized the urgent need for a comprehensive, long-term onion policy. This proposed policy framework aims to stabilize market prices and prevent the recurring financial distress that onion growers experience during price volatility periods.
Market Activity and Price Variations
Market data from Thursday's trading session reveals the extent of price fluctuations within the wholesale onion market. Approximately 24,000 quintals of onions were successfully auctioned at Lasalgaon APMC during the day's trading.
The recorded price range demonstrated significant variation:
- Minimum wholesale price: Rs 400 per quintal
- Maximum wholesale price: Rs 1,515 per quintal
- Average wholesale price: Rs 1,075 per quintal
This wide price disparity highlights the unpredictable nature of the current onion market and underscores the challenges farmers face in securing fair returns for their agricultural produce. The situation continues to develop as stakeholders seek sustainable solutions to this pressing agricultural crisis.
