Onion Farmers Face Financial Setback as Prices Drop Sharply

Onion farmers throughout the nation are currently facing difficulties as the price of onions is steadily declining. This has a significant negative financial impact on farmers. Due to a sharp decline in onion prices, farmers who grow onions are also having problems in Maharashtra. The price of the onions dropped to Rs. 3-4/kg. The Maharashtra government has however announced a compensation of Rs. 350/quintal to affected farmers. In the meantime, why did the cost of onions decrease? Let's look at this.

Onion Market: The market's increased supply of onions affected prices

Large amounts of onions are grown in Rajasthan, Gujarat, and Maharashtra. These states have also generated a significant amount of onion this year. The availability of onions in the market has increased as a result of the increase in output. Due to the rise in income, the price has decreased. Hailstorms and unusual rain have both happened simultaneously in different locations of the country.

The impact on agricultural produce has been severe. Due to heavy downpours, the onion crop has also experienced severe losses. In addition, the air is now more humid. The onion is rotting as a result. This appears to have an impact on rates. Market prices for farmer's onions are cut in half.

Unseasonal rain: Hailstorms and unseasonal rain can have an impact on onions

Unseasonal rain is said to be the primary cause of the onion's low price. To prevent the onion from spoiling, a significant quantity is being shipped to the market. Farmers are bringing onions to market out of concern over spoiling. The Market Committee has a big supply of onions, which is impacting the prices.

Maharashtra is the industry leader in the production of onions

With a percentage of the national production of onions of roughly 43%, Maharashtra leads the way. Madhya Pradesh, meanwhile, holds a 16 per cent share. Gujarat and Karnataka share roughly 9%.

The crop of onions is grown three times a year, in the Kharif and Rabi seasons. Everywhere in the nation, onion harvest season guarantees a consistent supply of fresh onions all year long. However, occasionally weather whims can either ruin the stored onion or harm the seeded region. This raises domestic pricing and causes supply restrictions.