In some parts of Maharashtra farmers are forced to sell their onions for as little as Rs 3-5 per kg. The arrival of more onions onto the market is causing further concern. Last week, onion farmers in the Aurangabad region of the state registered their protest by refusing to sell their produce to agricultural produce market committees (APMCs) for a few days. This week, farmer organisations have decided to go out onto streets to protest on Thursday 19 May.
Onion output is estimated to touch a new record at 20.3 million tonnes in the ongoing 2015-16 crop year (July-June) as against 18.92 million tonnes in 2014-15. The previous record was 19.4 million tonnes in 2013-14. This is causing concern among farmers as they are unable to store as much of the produce as they want. While top quality onions are being stored, farmers are forced to sell their lower-grade onion at low prices, top officials of the Lasalgaon APMC said.
NAFED purchased onions at around Rs 700-800 per quintal for storage but low-quality onions are selling at Rs 100-150 per quintal and this is a cause for concern, said Nanasaheb Patil, chairman of Lasalgaon APMC. According to him, kharif plantation could take a hit if the farmers continue to make losses.
According to Patil, prices of the bulb have dropped to such an extent that they do not cover the cost of production. Last season was bad for farmers and this season promises to be the same; farmers are not in a position to sustain losses for two consecutive seasons, he said. Some 16,000 quintals arrived at Lasalgaon on Tuesday with modal prices at Rs 725 per quintal. On Monday 18,905 quintals arrived at the market with modal prices touching Rs 700 per quintal.
Arrivals are expected to increase as the season progresses, he said, adding that this will result in lower prices. Patil pointed out that some farmers at present are keeping the onions in the open. This is alright as long as it is bright and sunny; once the rains begin, the farmers will be forced to resort to distress sales, he said. A limited amount of onion has been stored under the Price Stabilisation Fund of the Centre and more needs to be done to maintain stocks, he said. Moreover, late kharif onion arrivals are on the rise in Madhya Pradesh, Gujarat and Rajasthan. In Nashik district alone, daily onion arrivals exceed 15,000 to 20,000 quintals.
A recent National Horticultural Research and Development Foundation ( NHRDF) report states that onion exports fell by 6.75% to 828,000 tonnes in the first 10 months of 2015-16. Patil pointed out that some incentives should be given so that farmers are encouraged to export. According to the latest NHRDF report, harvesting of rabi onion is continuing in full swing in almost all the major rabi onion-producing states.
