In a major setback for Maharashtra’s onion growers, prices of onions have seen a sharp fall across the Nashik Agricultural Produce Market Committee (APMC) yards due to a sudden surge in supply. The price crash has left thousands of farmers worried, prompting urgent appeals to the state government for subsidy intervention and procurement support.
According to officials of the Lasalgaon APMC — Asia’s largest onion market — wholesale onion prices have dropped drastically over the past week. Farmers who were earning around ₹2,000 per quintal a fortnight ago are now receiving less than ₹700–₹800 per quintal, a fall of nearly 60%. The steep decline comes amid a flood of fresh arrivals from local farms and neighboring districts, overwhelming buyers and storage facilities.
Harvest Glut Hits Farmers Hard
Nashik, known as the onion capital of India, contributes significantly to the country’s onion production. However, favorable monsoon conditions and an early harvest have resulted in a bumper yield this season. While production figures are being celebrated in agricultural circles, ground reality suggests a crisis situation for small and marginal farmers unable to recover production costs.
Farmers from Niphad, Chandwad, Sinnar, and Lasalgaon talukas told HappenRecently.com that the current market prices do not even cover transportation and labor expenses. “We worked hard throughout the season hoping for a decent return, but the rates have collapsed overnight. Many growers are forced to sell onions at throwaway prices,” said Pramod Shinde, a farmer from Chandwad.
Similar concerns have been raised by farmers’ groups and unions, who demand that the Maharashtra government initiate immediate procurement at minimum support prices (MSP) to prevent widespread financial distress.
Government Response Under Consideration
State agriculture officials have acknowledged receiving reports of the price fall from Nashik and adjoining regions. Preliminary assessments indicate an oversupply situation due to the overlapping of late kharif and early rabi onion arrivals. Government sources confirmed that discussions are underway to stabilize prices and protect farmer interests through intervention mechanisms such as subsidy support and procurement drives.
A senior official from the Department of Agriculture said, “We are aware of the situation in Nashik and are monitoring price trends closely. Possible measures include direct purchases through cooperative federations, financial aid for transportation to distant markets, and temporary storage subsidies.”
Farmers have urged both the state and central governments to announce a relief package, citing previous assistance provided during similar price crashes in 2019 and 2021. Representatives from local farmers’ organizations have warned that without timely intervention, many cultivators may face severe financial losses and be forced to abandon onion farming in the next season.
Impact on Market and Consumers
While the fall in wholesale prices has created distress among growers, retail consumers across Maharashtra may benefit from reduced onion costs in the coming weeks. Retail onion rates in urban centers such as Mumbai, Pune, and Nagpur are expected to decline to ₹15–₹20 per kg from the previous ₹30 levels. However, agricultural experts caution that the price drop may be short-lived if farmers reduce acreage in the next cycle due to profitability concerns.
Traders also note that the excess supply has burdened existing cold storage facilities in Nashik and nearby regions. The inability to store or transport surplus onions quickly is contributing to wastage and further price deterioration. Market intermediaries are urging the government to enhance cold chain infrastructure and logistics support to minimize losses.
Expert Views and Recommendations
Agriculture economists emphasize that a long-term policy framework is necessary to safeguard farmer incomes amid volatile onion price cycles. Experts recommend the introduction of dynamic procurement strategies, transparent market intelligence systems, and real-time data sharing between APMCs and the government.
Dr. Hemant Patil, an agribusiness analyst, stated, “Nashik’s recurring price fluctuations underline the urgent need for an integrated onion price stabilization policy. The government must balance import-export decisions, encourage diversification of crops, and support farmers with timely credit and insurance.”
There are also calls for the development of onion dehydration units and food processing clusters in Nashik to create value-added products and reduce dependency on volatile fresh produce markets. Establishing farmer-producer companies (FPCs) and connecting them directly with bulk buyers can also help mitigate market risks.
Farmers Await Swift Relief
As of Wednesday, October 15, many growers continued staging peaceful protests outside APMC yards in Lasalgaon and Niphad. They have appealed for immediate government procurement at ₹2,000 per quintal and subsidies for transportation to other markets across India. Local leaders and agricultural cooperatives have joined the momentum, urging authorities to act before the situation worsens.
Despite the price slump, the quality of onions from Nashik remains high this season, with uniform size and color. However, the sudden loss in market value threatens overall farm income in the region, which heavily depends on the onion crop as a primary livelihood source.
Agricultural experts predict that without swift government action and proper logistical support, many farmers could face mounting debts. The Nashik district administration is expected to submit a detailed report to the Maharashtra government this week highlighting the loss estimates and possible intervention strategies.
