Onion prices have touched a five year low, with the average price that farmers could fetch being Rs 450 per quintal at the Lasalgaon APMC, which is the largest market for onions in India.
The fall in price is mainly due to excessive production in the state, lack of storage and processing infrastructure and the low prices quoted by traders.
In February last year, the average price was Rs 740 per quintal. This was at a time when the State was suffering from a severe drought, and the cost of production was Rs 950 per quintal.
With expectations of a slow down in production in March, the prices might stabilise, giving some relief to farmers.
1 RS = 0.015 USD