Onion Prices At Rs 80-90 a kg in Bengaluru: Farmers Upset As Earnings Remain Low

Despite the surge in onion prices, onion-growing farmers are voicing their grievances about their meager earnings. Their frustration is primarily directed towards intermediaries and sellers operating in the Yeshwanthpur APMC market in Bengaluru, as they claim that these middlemen are purchasing their onion produce at half the market rates. Presently, in Bengaluru, onions are fetching prices ranging from Rs 80 to Rs 90 per kilogram. However, the farmers are only receiving Rs 40 to Rs 50 per kilogram for their onions.

One of the farmers, expressing the collective sentiment, lamented the challenges they have faced over the past four years due to persistently low onion prices. According to their accounts, sellers and middlemen are procuring onions from them at the rate of Rs 40 per kilogram but are subsequently selling them for double the price, i.e., Rs 80, in the market. This stark disparity in earnings has left the farmers struggling to repay the loans they have taken, despite the seemingly high onion prices.

The recent spike in onion prices, which has seen them double within a week, is attributed to a decline in onion supplies. Reports suggest that in districts like Chikkodi and Bagalkot, middlemen have been stockpiling onions to further inflate their prices. Additionally, onion production in areas such as Bagalkot, Gadag, and Vijayapura has been adversely affected by unfavorable weather conditions, including rainfall. Moreover, onion supplies from regions like Nasik and Pune, as well as other states, have been disrupted due to the widespread surge in onion prices across the nation.

To address this situation, the Department of Consumer Affairs has implemented a Minimum Export Price (MEP) of $800 per ton of onions, effective from October 29 to December 31, with the aim of curbing onion exports from the country. This decision was made in response to the abrupt escalation of onion prices in cities like Delhi, Mumbai, and other parts of the country. The government reported a reduction in onion prices by 5 to 9 percent following the imposition of MEP on onion exports.