Despite the central government removing export duty on onions, exports have dropped by 11 percent this year. As a result, onion prices have crashed to just Rs 1,300 per quintal. Data from the recently concluded financial year shows that India’s onion exports have declined significantly, leading to a loss of more than Rs 370 crore in foreign exchange compared to last year.
This is the first time in the past five years that onion prices have fallen for three consecutive months. The continuous fall has caused deep concern among farmers, many of whom are now in a desperate situation.
Bharat Dighole, President of the Maharashtra State Onion Producer Farmers' Association, highlighted that onion prices have suffered because of the government's export policies. While earlier onions for the central government's buffer stock were purchased mainly through NAFED (National Agricultural Cooperative Marketing Federation of India), in recent years, the responsibility has also been shared with the NCCF (National Cooperative Consumers' Federation).
However, several farmer producer companies and federations are facing serious allegations of corruption. It is claimed that instead of buying onions directly from farmers, these organizations bought cheaper onions from traders but reported them at higher prices under the government's buffer stock purchase scheme. This has led to the collapse of the government's plan to stabilize onion prices through buffer stock.
Experts have warned that if onion farmers do not receive a price that covers their total production cost, many will stop cultivating onions altogether. Dighole stressed that the central government should focus not only on controlling consumer prices but also on ensuring fair returns for farmers.
Looking ahead, agricultural leaders are calling for a sustainable onion policy to protect farmers from such financial setbacks and to ensure stable production and pricing in the future.