Onion prices have reached ₹ 100 per kg across the country. Every year, onion shortage and price hike are seen at this time, but this time the situation is very bad. Two years of suffering of farmers is hidden behind this crisis, which affected onion cultivation and reduced supply in the market. Bharat Dighole, President of the Maharashtra Onion Producers Association, said that the government sees the tears of consumers, but ignores the pain of farmers.
Main reasons for increase in onion prices
1) Decline in onion production – This year onion production decreased by 60 lakh tonnes, which reduced the supply in the market.
2) Lack of old stock – The stock of Rabi crop of March 2024 is almost over.
3) Rain in Maharashtra and Madhya Pradesh – Due to rain, the arrival of new crop was delayed.
4) Decrease in farming – Farmers distanced themselves from onion cultivation due to losses in previous years.
In many big cities including Delhi, the interest is Rs 100. kg
In Maharashtra, which produces 43% of the country’s onion, onion prices touched record levels. On November 6, the wholesale price of onion reached ₹ 56.56 per kg in Lasalgaon Mandi of Nashik. At the same time, in cities like Delhi, Lucknow, Kolkata, and Chandigarh, onion is being sold at a price of ₹ 100 per kg.
Farmers told their problems
Farmers say that due to the policies of the government, they had to suffer losses, due to which they reduced onion cultivation.
- Reduction in production: Onion production in Maharashtra decreased from 136.69 lakh tonnes in 2021-22 to 86.02 lakh tonnes in 2023-24.
- Reduction in cultivation area: Between 2021 and 2024, the area of onion cultivation decreased by 4.04 lakh hectares.
- Government intervention: Farmers allege that whenever onion prices rise, the government harms their profits by banning exports or imposing stock limits.
When will the new crop arrive?
There is little hope of onion prices coming down before December due to the delay in the arrival of the new crop. The new crop of onions from Alwar in Rajasthan has started arriving in Delhi. But, the effect of the buffer stock, which is only 2% of the country’s total production, will not be visible on the ground until December. Due to rains in Maharashtra, the new crop may arrive by the end of November.
Electoral impact of onion prices
Maharashtra Assembly elections are on Nov 20. Onion prices and supply have become an election issue in the state. Farmer leader and former MP Raju Shetti says that after the elections, the central government may again ban onion exports. The government had lifted the export ban in May, but imposed a minimum export price. This was also removed in September.
What is the way forward now?
Experts believe that the combination of the new crop and government policies may provide some relief in onion prices by December. However, if the problems of farmers are not resolved in the long run, cultivation will continue to decline and both consumers and farmers will suffer losses.
