The price of onion fell to 2 cents per kg in India

Published Mar 1, 2023

Tridge summary

Indian onion producers are staging strikes due to a significant drop in wholesale prices of their produce, which has fallen to nearly 2 cents per kg. This situation is particularly surprising in the context of a global onion shortage that has led to record prices in Eurasia. The price drop is attributed to increased supply and adverse weather conditions that have accelerated ripening and reduced crop quality. The situation is further worsened by a lack of storage facilities, resulting in an oversupply in the market. Indian farmers are either dumping their crops or selling them at losses as the current prices do not cover the transportation costs. The situation is exacerbated by the expansion of onion cultivation areas without commensurate infrastructure development. Exports, which could provide a potential escape route for farmers, are limited due to quality issues and reduced demand from traditional buyers like Malaysia, Indonesia, Pakistan, and Sri Lanka.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

India's media has been flooded with reports of strikes by onion producers in the country amid a drop in the wholesale price of their products to almost 2 cents per kg, EastFruit reports. “The situation looks especially paradoxical against the backdrop of the global onion crisis, because prices for these products are breaking records throughout Eurasia from the UK to the Philippines. Moreover, in Pakistan, neighboring India, prices for onion are now ten times higher than in the Indian market,” notes Evgeny Kuzin, head of the analytical direction of the APK-Inform: Vegetables and Fruits project. So-called auctions, where Indian farmers sell their products to traders, were virtually paralyzed in several cities on Feb. 28 due to strikes and protests by farmers, The Times of India reports. The reason for the strike was a sharp drop in the price of onions due to a serious increase in its supply in some regions of the country. Thus, in five days (ie from the last Saturday of February) ...

Source: Eastfruit