Onion farmers faced disappointment as onion prices dropped instead of rising, following the resumption of auctions at the Late Nivrutti Kaka Deore Agricultural Produce Market Committee. The market had remained closed for the past four days due to Gudi Padwa, weekly holidays, Ramadan Eid, and the financial year-end.
High Supply, Low Demand
Farmers, who had been waiting for over a week in hopes of better prices due to export duty, brought a large quantity of onions to the market. This sudden surge in supply, coupled with reduced demand in the domestic market, led to a price drop of Rs 150 to 200 per quintal instead of the expected increase. This has left farmers frustrated, as they were expecting higher returns.
Seasonal Onions Flood the Market
Last month, the arrival of onions in the domestic market had already increased with the introduction of new-season summer onions, including red onions. The high influx of fresh produce has contributed to the decline in prices, adding to the concerns of farmers struggling with production costs and market fluctuations.
The onion market situation remains uncertain, and farmers are now hoping for an improvement in export policies or a rise in domestic demand to stabilize prices.