After record-breaking prices, the cost of tomatoes just started to return to normality. Before the consumers can let out a sigh of relief, it seems like onion prices might shoot up in the upcoming months up to ₹70-80 per kg, if the weather plays a spoilsport. On Friday, at the onion mandi in the Agricultural Produce Market Committee (APMC) yard in Yeshwantpur, a kg of onion was selling between ₹26 and ₹32.
The prices of onion at the APMC have jumped by 50-60% in the last 15 days, say APMC traders. Even in retail markets, the prices have gone up from ₹30 per kg to ₹40-45 per kg. Though these prices are considered stable, it might vary depending on the arrivals from other parts of the State, which are expected in the second half of the next month.
Delayed harvest
The region around Chitradurga, especially Challakare, is the major onion-growing region. Other places like Davangere, Vijayapura, Gadag, Hubballi and Belagavi also have some onion growers. However, with monsoon not gaining pace, the harvest season has been delayed by one and a half months. Even the leading onion-growing States of Maharashtra and Madhya Pradesh have been affected by deficient rainfall. This has resulted in over-dependence on the old stock arriving from Ahmed Nagar and Nashik in Maharashtra.
“By this time, around 30,000-40,000 bags of onion used to arrive here every day from Chitradurga and Chellakere. This year, we are getting hardly 1,000 bags a day. If the rain is kinder in September, then it will be good for the onion crop. But if it rains heavily in October or November, the arrivals will reduce even more,” B. Ravi Shankar, an onion merchant in APMC as well as the secretary of Onion Merchants Association of Bengaluru told The Hindu.
Discolouration
Around 10-20% of onions to the APMC yard comes from Vijayapura. But as the bulbs are from the summer harvest, there is discolouration, merchants said. The same issue plagues onions coming from Maharashtra as it is old stock too. The discolouration and black spots is a cause of concern for the retail traders too as customers refuse to buy them. This has created an artificial supply issue in the market.
However, in case of unfavourable weather conditions, there will definitely be a supply crunch, say traders. “If onions do not come from other parts of the State, we would have to depend on the old stock which is currently coming in from Maharashtra and Gujarat until January next year,” Mr. Shankar said. “Now, the quality of onions is quite average and even then, the sales have been good. In the next two months, if supply falls, then the prices will double, if not more,” said Nataraj, another onion merchant. in APMC yard.
Monsoon not the only factor plaguing onion farmers
It has been three years since the onion growers in the State got decent returns on the vegetable. “The last three years, there was too much rain and the onions rotted away in the ground itself. This year, it is the opposite, and the plants are going dry in the heat,” said Mallikarjun, president, Rajya Raitha Sangha, Chitradurga. He said that these unpredictable weather patterns stopped many farmers from sowing onions this time.
He said that while there was a 50-60% decrease in Challakere, overall, 40% of farmers in Chitradurga decided to not grow onions this year.
He pointed out that the government’s latest decision to impose 40% duty on the exports of onions has also discouraged farmers.
“A day before the announcement of the excise duty, the price for a quintal of onions was between ₹2,600 - ₹3,500. However, two days after that, the price fell to ₹1,800 - ₹2,600 per quintal. This might be the government’s way of regulating the price, but they are taking extra money now (as tax) from farmers who have already been burdened with heavy losses and loans,” Mallikarjun lamented.
The Union government, earlier this week, had announced that onions will be bought for a record price of ₹2,410 per quintal to pacify the farmers who were protesting about the levy of duty on exports. The farmers from Karnataka are also looking forward to this now.
