India: Onion prices will remain depressed till mid-March

Published 2023년 2월 28일

Tridge summary

Onion prices in India are expected to remain low until mid-March due to a supply surplus, caused by an increase in the cultivation of a variety with a shorter shelf life and extended monsoon rains. This has led to a panic sale of the late kharif harvest, which has a limited shelf life of three days due to rising temperatures, resulting in farmers selling at rates below half of their input costs. Experts recommend government intervention, including using the price stability fund and cash transfers to affected farmers. They also suggest that the government could subsidize transport costs and promote exports to improve prices. Maharashtra, a major onion-producing state in India, is experiencing political implications due to these issues, especially with the upcoming 2024 general elections.

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Original content

Onion prices will remain depressed till the arrival of the long shelf life rabi or winter crop in the markets in mid-March, experts said on Tuesday. There is a supply glut in the market which has led to events like farmers getting a pittance of their input costs for the produce and also angry farmers halting trading at Asia's biggest market place Lasalgaon in Maharashtra, on Monday, they said. Independent farm sector analyst Deepak Chavan told PTI that there are a variety of reasons for the current spate of troubles which has led to panic selling by farmers as the shelf life of the late kharif harvest is too small, and called for government intervention. Chavan said more farmers sowed the late kharif variety rather than the kharif variety this year leading to an increase in acreage and estimated that productivity has gone up by up to 20 per cent leading to the current situation. Prolonged rains delayed sowing and many farmers opted for the late kharif variety. They also saw a ...

Source: Economic times