Maharashtra: Onion Price Crash Brings Relief to Consumers, Crisis for Farmers

Mumbai, 15th May 2025: While consumers enjoy cheaper onions, the sharp drop in prices has pushed farmers into a financial crisis. Wholesale onion prices in Maharashtra’s Agricultural Produce Market Committees (APMCs) have plunged to ₹800–₹1,700 per quintal, far below the cost of production, estimated at ₹30,000–₹35,000 per acre.

The slump is attributed to a glut of summer onions from Nashik, Solapur, Ahmednagar, and Madhya Pradesh, combined with limited storage capacity and weak export demand. Many farmers report earning only ₹1,000–₹1,200 per quintal, barely covering input costs, forcing some toward debt.

The situation worsened despite the central government removing the 20% export duty on onions from April 1. Ongoing India-Pakistan tensions and political instability in Bangladesh, key export destinations, have triggered export restrictions and severely dented demand, driving prices even lower.

At the Navi Mumbai APMC, 100–150 truckloads of onions are arriving daily. Good-quality onions now sell for ₹10–₹15 per kg, a stark fall from ₹35–₹40 per kg two months ago. Lower-grade onions are fetching just ₹1–₹5 per kg.

According to traders, prices are expected to remain low for at least 15–20 more days, with only a marginal recovery likely afterward. Farmers, however, are already in distress.

“Had the central government acted earlier, today’s crisis could have been avoided. A permanent export policy is urgently needed to protect farmers,” said Danjay Pingale, President of the Onion-Potato Adat Traders Association at APMC.

While the price dip offers short-term relief to households, the lack of planned export strategy and storage infrastructure has once again exposed the vulnerability of India’s agricultural system ,leaving thousands of onion farmers in a state of uncertainty.