In a major worry for farmers, onion prices have declined by 25 per cent the past two weeks to trade around the cost of production, in a development that may deter farmers from continuing to sow the politically sensitive crop this kharif season.

In the benchmark Lasalgaon wholesale mandi in Nashik district of Maharashtra, Asia’s largest spot onion selling platform, onion was quoted at Rs 7.40 a kg on Tuesday compared to Rs 9.50 a kg on June 10. Total onion arrivals during this period, however, plunged by a massive 1,600 tonnes on Tuesday, from 2,333 tonnes on June 10. Some farmers were forced to sell their produce at Rs 4 a kg.

The sharp decline in onion prices ahead of the kharif sowing season has disappointed farmers at large. Most cultivators across various horticulture products, including fruits and vegetables, have suffered badly so far this year. While coronavirus (Covid-19) driven mandi closures and the nationwide lockdown disrupted transportation for around 70 days, unavailability of labour for harvesting matured crop followed by devastating impact of cyclone Nisarg in parts of Maharashtra hit farmers hard.

“The quality of onion is very poor due to delay in harvesting of matured crop, caused by shortage of workers and problems in transportation. Many farmers left matured onion unharvested during the lockdown period. Since lockdown continued for 70 days and labourers were not keen to come out for field work amid fears of Covid spread, the quality of onion deteriorated in the field as the commodity starts rotting and germinating new plant in a couple of days. Hence, farmers sell their produce in a hurry to get rid of stock,” said Narendra Wadhwane, Secretary, Agricultural Produce Market Committee (APMC), Lasalgaon.

Farmers in and around Lasalgaon, Niphad and other major onion growing regions in Nashik, however, are planning to continue sowing this politically sensitive crop this year as well, on hopes for a revival in price trend in coming months.

Nashik in Maharashtra is significant in terms of onion production. Thousands of farmers across the district are fully dependent on onion cultivation due to suitable agro climatic condition and more so, soil quality, which helps germinate plants from seed easily and yield higher output than any other crop in this region. Nashik district alone contributes nearly 16 per cent of India’s total annual onion output of around 23 million tonnes which is divided into three cycles - early kharif (15 per cent), seasonal kharif (70 per cent) and late kharif (15 per cent)- seasons.

“Seeds are adequately available this season as well. While monsoon rainfalls have not yet started in Nashik district, farmers have began sowing of onion seeds in irrigated land for seed plants that can be later re-planted with the onset of showers for seasonal crops. Nashik farmers have very limited choice for crop shifting. Normally, farmers sow onion on hopes for a revival in prices next year,” said Hansraj Patil, an onion farmer in Niphad near Lasalgaon.

In retail, however, onion is sold at Rs 15 a kg, a decline of 40 per cent from its price of Rs 25 a kg until two weeks ago.

Barely six months ago in December 2019, onion was quoted at Rs 70-80 a kg in wholesale and Rs 140-150 a kg in retail which invited harsh actions like imposition of stock limit and ban on its exports among others to bring down its prices to an affordable level.

There is a huge disappointment among farmers ahead of sowing season as the current price does not yield even the cost of production which some farmers quote at Rs 8 a kg while others consider it at Rs 9 a kg.

“There is no export orders as well due to lockdown in global markets on Covid-19 spread fears. Farmers are bringing in stored onion to create space for next season crop and also fetch some money to buy seeds and fertiliser for the next seed sowing,” said Santosh Patil, chairman, APMC, Sangli.