Over 500k Nashik onion farmers in distress as prices plummet
Pune/Nashik, April 15 -- A steep fall in wholesale onion prices has pushed farmers in Nashik into distress, forcing many to sell below cost while others hold back their produce in the hope of a rebound.
More than five lakh growers in the district, Maharashtra's largest onion-producing region, have been affected as prices fall across 17 APMCs, including Asia's biggest onion market at Lasalgaon, where wholesale rates are hovering between Rs.800 and Rs.1,000 per quintal.
Sachin Kumbharkar, a farmer from Patoda village in Yeola tehsil, had taken a loan of Rs.2 lakh to cultivate rabi onions on 11 acres, expecting reasonable returns. Instead, he is now staring at significant losses.
"Earlier this month, I sold 30 quintals at the Lasalgaon APMC at Rs.900 per quintal. My production cost, including transport, is over Rs.1,700 per quintal. I don't know how I will repay the loan if prices don't improve," he said, adding he already has Rs.50,000 in pending from an earlier loan.
Across the district, farmers report similar stress. Sandip Fapale of Maralgoi village in Niphad tehsil has harvested his crop but is holding back from taking it to the mandi. "I know I will not even recover my costs at current rates," he said.
Traders and exporters attribute the crash to disrupted export markets following the West Asia conflict involving the US, Israel and Iran, which escalated in late February. "Exports to countries such as Iran, Iraq, Kuwait, UAE and Oman have come to a halt," said Vikas Singh, Nashik-based national vice-president of the Horticulture Produce Exporters Association of India.
Domestic demand has also weakened, he added. "Irregular supply of commercial LPG has forced many hotels and restaurants to cut down operations, reducing onion consumption."
Bangladesh, which once imported around 150 truckloads daily, has curtailed its purchases over the past two years, further shrinking demand. "The war has only worsened the situation," said exporter Manoj Jain.
Freight costs have surged, making exports unviable. "Shipping charges have jumped from $500-800 per container to over $6,500. Exporters are not willing to take risk," said an exporter, noting that premium onions that earlier fetched Rs.20 per kg now sell below Rs.10 in mandis.
With prices depressed, arrivals at Lasalgaon APMC have dropped to 13,000-14,000 quintals a day, from the usual 30,000. Many farmers are storing the rabi (summer) crop, with a shelf life of six to eight months, in hopes of better prices.
Officials said central agencies such as NCCF and NAFED are expected to procure around two lakh quintals soon to build buffer stocks. "Farmers are hoping prices will improve by then," a senior APMC official said.
"Farmers are in dire straits. Selling at current prices means huge losses. The government must step in with financial support," said Lasalgaon APMC chairman DK Jagtap.
This is the second straight year of distress. Last year, unseasonal rains damaged crops on over 14,000 hectares, affecting more than 50,000 farmers.
Maharashtra minister Chhagan Bhujbal has written to chief minister Devendra Fadnavis, urging relief. "The government must provide assistance. I will continue to pursue the issue," he said.
Bharat Dighole, president of the Maharashtra Onion Growers Association, said many farmers rely on private loans. "They are unable to recover costs, let alone repay loans and support their families. Immediate subsidies are needed."...
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