Onion prices in Kurnool experienced a significant fall in recent weeks, causing heartburns to local farmers. A promising price of Rs 3,700 per quintal has plummeted to Rs 1,900 a near 50 per cent fall. (Representational image: DC)
Multiple factors have contributed to this price crash. The central government’s ban on onion exports and the flooding of Maharashtra onions in the local market are the main causes.
During this year’s Kharif season, onion was cultivated on 23,000 hectares across Kurnool and Nandyal districts. This was a substantial decrease from the previous coverage of 35,000 hectares.
The situation was further worsened by unfavorable weather conditions, characterised by insufficient rainfall during the Kharif season. This adversely impacted the quality of local onions.
The export ban would last until March next. This has effectively halted the export of Kurnool-grown onions. Consequently, local traders show least interest in procuring these onions and the market is now inundated with Maharashtra onions.
Maharashtra onions are favoured by consumers for their larger bulb-size and longer shelf life despite their higher prices. Many traders are currently procuring onions at intermediate prices, which have also experienced a significant decline in recent weeks.
K Mallesh, an onion trader from the old city, said local consumers are reluctant to purchase lower-quality onions grown in the district, instead opting for the superior quality imports from Maharashtra.
For instance, the average price per quintal on December 8 stood at Rs 2,704 and it plummeted to Rs 1,726 on the 13th, Rs 1,121 on the 16th, Rs 1,532 on the 18th, and Rs 1,620 on the 21st. Only a select few lots are commanding the maximum price, sparking concern among local farmers as the overall average price continues to fall.
For the past two years, onion prices in the region fluctuated between Rs 100 and Rs 500 per quintal. Despite initial optimism this year, farmers now find themselves confronting a rapid and challenging downturn.
In October and November, the Kurnool agricultural market received daily harvests of 5,000 to 7,000 quintals of onions. As December progressed, onion yields steadily dwindled.
Kurnool Market yard secretary K Govindu explained that new crop arrivals anticipated in the second week of January could potentially provide a fresh supply of higher-quality onions for the upcoming Rabi season.
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