Onion Farmers in Maharashtra Halt Auctions in Protest as Prices Hit a 72% Drop

Onion farmers at the Lasalgaon Agriculture Produce Market Committee (APMC) halted auctions for over two hours to protest the significant drop in average wholesale onion prices. The prices fell by 72% in the past 1.5 months after the Indian government imposed a ban on onion exports. The average prices went from Rs 3,950 per quintal on December 6, 2023, to Rs 1,100 per quintal on Monday.

Farmers expressed their displeasure, highlighting the cost of onion production at Rs 1,800 per quintal and the current selling price at an average of Rs 1,100 per quintal, resulting in heavy losses. They urged the government to either lift the export ban or directly procure onions from farmers at a price of Rs 3,000 per quintal.

The president of the Maharashtra state onion growers association emphasized the need for the government to revoke the export ban immediately and demanded compensation of Rs 2,000 per quintal for farmers who sold their produce at APMCs after the ban.

The situation is exacerbated by the increased supply of late kharif onions in the market, which have a shelf life of less than a month. With the absence of export avenues, farmers are compelled to sell their produce at current market rates, leading to financial losses. The farmers stressed the importance of resuming onion exports to balance demand and supply, preventing further financial hardships.