Onion Prices Crashed in Maharashtra

IAS Prelims 2023

Average onion prices have fallen in Nasik while low quality onions have been offered in the in the price range of Rs.1.50 to Rs.2 per kg according to data compiled by the National Horticulture Research and Foundation.

There has been increase in onion supply. The supply of red onions has already begun from South India. Onions also came from Rajasthan and Madhya Pradesh.

Amidst sharp fall in onion prices due to increase in supply and unsold stock, the Maharashtra government proposes to give a subsidy of Rs 100 per quintal to the farmers.

The government’s move comes after parties and various farmers organisations cited that the farmer from Karanjgaon village in Nashik district has claimed to have got the rate of 5 paise per kg for onions, prompting him to dump his produce of 13 quintals in his field in protest.

The price is ranged between Rs 200 and 800 per quintal, which the farmer bodies are arguing was quite low.

Besides, the onion growers were incurring losses due to gap between the cost of production at Rs 885 per quintal and the sale at Rs 500 per qunital.