Onion Growers Seek Relief: Rs 3,500/quintal MSP and Rs 1,500/quintal Compensation

Rain clouds rolled over Maharashtra’s onion belt. Then came war winds from West Asia. Prices collapsed. Crops rotted. Farmers counted losses in rupees — and sold tears by the quintal. Across Nashik, Solapur and Chhatrapati Sambhajinagar, onion growers are reaping a bitter harvest this season as wholesale prices at agriculture produce market committees (APMCs) have crashed far below production costs.

Prakash Galadhar, a farmer hailing from Paithan taluka in Chhatrapati Sambhajinagar, hauled 1,262kg of onions he had harvested to market last week. After deductions for labour, loading and transport, his final balance showed he owed the trader Re 1.

In Satana APMC of Nashik district, farmer Jitendra Solanke brought 30 quintals hoping to recover at least part of his investment. Traders first offered Rs 50 a quintal. After he protested, rate climbed to Rs 175 a quintal — Rs 1.75 a kg. Still, numbers refused to add up. “I spent Rs 1,200 per quintal to grow crop. After sale, labour and transport charges, only Rs 500 remained. The loss mounted to Rs 36,000,” Solanke said.

Inputs have become expensive — seeds, fertilisers, diesel, mechanised farming and labour costs have all risen sharply — while market prices have sunk into mud. “We sell onions at Rs 4 to Rs 5 per kg while production cost is over Rs 12,” said Bhausaheb Jagtap, a farmer from Pune district. “After paying everybody, nothing is left,” Jagtap said.

Prices have been sliding since Feb this year. At Lasalgaon APMC in Nashik — country’s largest onion wholesale market and benchmark for national rates — the kitchen staple is currently selling between Rs 400 and Rs 1,600 a quintal. Nearly 80% of arrivals fetch less than Rs 800 a quintal.

In Solapur APMC, arrivals on May 13 touched 14,756 quintals. Prices ranged from Rs 100 to Rs 1,700 a quintal, or Rs 1 to Rs 17 a kg. A year ago, onions sold there for Rs 2,500 to Rs 3,000 a quintal. Growers said break-even price stands near Rs 18 a kg.

“Losses are massive because nearly 80% of onions are selling between Rs 400 and Rs 800 per quintal,” said Bharat Dighole, president of Maharashtra Onion Growers’ Association.

Market experts blamed a perfect storm: bumper arrivals, weak domestic demand, export disruptions and rain-damaged produce flooding mandis. “Geopolitical tensions involving Iran, US and Israel disrupted export markets and reduced overseas demand,” said Vikas Singh, vice president of Horticulture Produce Exporters’ Association of India.

Unseasonal rain between March 19 and 21 added another blow to the farmers. Showers lashed Nashik district just as summer onion harvest began, damaging ready crop and triggering rot during storage. “Only 30% of produce was grade-1 quality,” said Prakash Jadhav, head of onion department at Solapur APMC. “Rain damage and long storage hurt quality.”

Farmers are demanding onions be brought under minimum support price, pegging at Rs 3,500 a quintal. Growers’ groups want Maharashtra govt to compensate farmers by Rs 1,500 a quintal for distress sales. (Inputs from Prasad Joshi)