Maharashtra onion prices plunge on oversupply

 In Vashi's Agricultural Produce Market Committee (APMC), wholesale onion prices have dropped from approximately US$0.42–$0.48 per kilogram in February to around US$0.08–$0.16 per kilogram in May. Retail prices have also fallen from roughly US$0.55 per kilogram to about US$0.30–$0.36 per kilogram.

Traders anticipate further price drops due to continued high arrivals and subdued demand. Ashok Karpe, a wholesaler at Vashi APMC, explained that farmers increased onion cultivation after earning strong prices last year, expecting similar returns this season. As a result, production has nearly doubled, with daily market arrivals reaching 100 to 150 vehicles, compared to the usual 90 to 100.

Additionally, unseasonal rain in rural Maharashtra has forced farmers to offload stored onions quickly to prevent spoilage, exacerbating the surplus. The main supply areas include Nashik, Ahmednagar, Sangamner, and Pune.

On the export front, conditions remain challenging. Although the Indian government removed the 20% export duty on onions in April, many farmers believe the decision came too late. Sachin More, a farmer from Nashik, commented that the waiver should have been implemented in January or February when export deals were being finalized.

Exporters and industry representatives have also raised concerns about the shrinking international market. Sanjay Pingle, president of the Kanda-Batata Aadat Vyapari Sangh at APMC, emphasized the need for a stable export policy and suggested government incentives to help keep the market viable for exporters.

While falling prices have hurt growers and traders, consumers are benefiting. Pradeep Sawant, a retailer, noted that the abundance of supply has allowed retailers to dictate purchase prices, resulting in increased consumer buying.