Hubballi: A steep fall in onion prices across North Karnataka has pushed growers into financial distress, even as consumers enjoy cheaper rates. The slump has been triggered by a combination of reduced demand from hotels due to scarcity of commercial LPG cylinders and a surge in arrivals from neighbouring Maharashtra.
With many hotels either shutting down temporarily or trimming their menus, demand for onions has dipped sharply. At the same time, increased inflow from Maharashtra markets has flooded local mandis, forcing prices down by nearly 50% in several places.
APMC Data Reveals Sharp Decline
According to APMC data, the Telgi variety of onion, which was selling at around Rs 1,500 per quintal during the first week of the season, is now trading at Rs 600 to Rs 700 per quintal. While urban consumers are pleased with the price drop, farmers say the crash has pushed them into a financial crisis.
Farmers Demand Government Intervention
Aravind Kulkarni, state secretary of Akhanda Karnataka Raita Sangha, Vijayapura, blamed global developments for the situation. "Because of one reason or another, onion prices are being slashed and growers are suffering. The government must intervene by maintaining price stability and encouraging exports to protect farmers," he told TOI.
Shabbir Yaragatti, an onion trader at the Hubballi APMC, said prices of the local onion variety had fallen to between Rs 200 and Rs 700 per quintal over the past 15 days. "The Puneri variety is now priced at Rs 800 to Rs 1,200 per quintal. Arrivals from Pune and Nashik have increased to 40–45 lorries a day compared to 20–25 lorries during the same period last year. Maharashtra has had a good yield this year, which has kept prices under pressure for over a month," he said.
Quality Issues and Export Woes
He added that untimely rains in March affected the quality of North Karnataka onions, making them substandard and contributing further to the price fall.
Another trader, Nasir Hussain Attar, said the West Asia war situation had badly affected exports. "Maharashtra onions are usually exported during this season. This year, exporters are hesitant as any delay could result in losses due to the perishable nature of the produce. As a result, onions meant for export are being diverted to Karnataka markets," he explained.
Suryakant Annasa Habib, another trader, pointed out that the decline in prices dates back to Dec 2024, when the Union government stopped onion exports to Bangladesh. "The decision has hit growers, traders and markets alike," he said.
