Demand for relief: Onion growers want MSP of Rs 3,500 per quintal and compensation of Rs 1,500 per quintal for distressed sales.
Rain clouds covered the onion belt of Maharashtra. Then the winds of war came from West Asia. Prices fell. The crops rotted. Farmers counted losses in rupees – and sold tears by the quintal. In Nashik, Solapur and Chhatrapati Sambhajinagar, onion growers are facing bitter harvest this season as wholesale prices at agricultural produce market committees (APMCs) have fallen far below the cost of production.Farmer Prakash Galadhar, resident of Paithan taluka of Chhatrapati Sambhajinagar, harvested 1,262 kg of onion and transported it to the market last week. After deductions for labour, loading and transportation, his final balance showed that he owed the merchant Re 1.At Satana APMC in Nashik district, farmer Jitendra Solanke brought 30 quintals in the hope of getting back at least some part of his investment. Traders first offered Rs 50 a quintal. After their protest, the rate increased to Rs 175 per quintal i.e. Rs 1.75 per kilogram.Still, the numbers refused to add up. “I spent Rs 1,200 per quintal to grow the crop. After sales, wages and transportation charges, only Rs 500 was left. The loss rose to Rs 36,000,” Solanke said.Inputs have become expensive – seeds, fertilizers, diesel, mechanized farming and labor costs have all risen sharply – while market prices have sunk into the mud.“We sell onions at Rs 4 to 5 per kg while the cost of production is more than Rs 12,” said Bhausaheb Jagtap, a farmer from Pune district. “After paying everyone, there is nothing left,” Jagtap said.Prices have been falling since February this year. At Lasalgaon APMC in Nashik – the country’s largest onion wholesale market and the benchmark for national rates – the kitchen staple onion is currently selling between Rs 400 and Rs 1,600 per quintal. Nearly 80% of the arrivals are priced below Rs 800 per quintal.At Solapur APMC, the arrival reached 14,756 quintals on May 13. Prices ranged from Rs 100 to Rs 1,700 per quintal or Rs 1 to Rs 17 per kilogram. A year ago, onion was sold there for Rs 2,500 to Rs 3,000 per quintal.Producers said the break-even price is around Rs 18 per kg. Bharat Dighole, president of Maharashtra Onion Growers Association, said, “The losses are massive as almost 80% of the onions are being sold between Rs 400 and Rs 800 per quintal.”Market experts blamed a perfect storm: bumper arrivals, weak domestic demand, disruption in exports and flooding of mandis with rain-damaged produce.“Geopolitical tensions involving Iran, the US and Israel disrupted export markets and reduced foreign demand,” said Vikas Singh, vice-president of the Horticulture Produce Exporters Association of India.Unseasonal rains between 19 and 21 March gave another blow to the farmers. Rains lashed Nashik district just as the summer onion harvest began, causing damage to the ready crop and causing rot during storage. “Only 30% of the produce was of grade-1 quality,” said Prakash Jadhav, head of onion department at Solapur APMC. “Rain damage and long-term storage lead to loss of quality.”Farmers are demanding to bring the minimum support price of onion within the range of Rs 3,500 per quintal. Producer groups want the Maharashtra government to give a compensation of Rs 1,500 per quintal to farmers for distressed sales.(Inputs from Prasad Joshi)