{"id":5879,"date":"2024-08-14T18:04:03","date_gmt":"2024-08-14T12:34:03","guid":{"rendered":"https:\/\/pwip.co\/blogs\/?p=5879"},"modified":"2024-08-14T18:04:36","modified_gmt":"2024-08-14T12:34:36","slug":"onion-crisis-has-affected-the-living-of-famers","status":"publish","type":"post","link":"https:\/\/pwip.co\/blogs\/onion-crisis-has-affected-the-living-of-famers\/","title":{"rendered":"Onion Crisis: Average wholesale prices\u00a0of onion up by 21%! PWIP"},"content":{"rendered":"\n<p>The onion crisis in Maharashtra has become a significant issue, especially for the farmers who are bearing the brunt of misguided inflation control policies. The Central Government&#8217;s decision to lift the ban on onion exports but impose steep export duties has backfired, making Indian onions too expensive for the global market. This has not only hurt the farmers but also impacted the local economy that thrives on onion cultivation.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Ajit Pawar\u2019s Apology: Hollow Words?<\/strong><\/h4>\n\n\n\n<p>Maharashtra\u2019s second Deputy Chief Minister, Ajit Pawar, recently embarked on a statewide tour ahead of the upcoming Assembly elections. His tour began with an apology to onion farmers in North Maharashtra, a region central to the country\u2019s onion production. Pawar admitted that the export ban was a mistake and assured the farmers that such a ban would not be imposed again. He stated, &#8220;I admit that the onion export ban was a mistake and apologize for that. There will be no onion export ban again. I have told the Central government, and we in the State government have agreed that there will be no onion export ban.&#8221;<\/p>\n\n\n\n<p>However, these assurances seem to be nothing more than hollow words. Despite promises from Union ministers, the Chief Minister of Maharashtra, and other BJP leaders, the ground reality remains unchanged. Farmers continue to struggle with low prices and high production costs, with no tangible relief in sight.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>The Reality for Onion Farmers<\/strong><\/h4>\n\n\n\n<p>Farmers like Rajaram Jamdade from Chombhut village in Ahmednagar are still grappling with the consequences of the export ban. Jamdade has reduced his cultivation area due to plummeting prices and is left with onions that cost more to produce than they are worth on the market. \u201cI still have eight quintals of onions in my yard. The rate is around Rs.2,600 per quintal. My cultivation and transport cost together is Rs.3,500 per quintal. So, what is the purpose of selling?\u201d he says.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/pwip.co\/blogs\/wp-content\/uploads\/2024\/08\/onions-1024x536.png\" alt=\"Onion Crisis, Export\" class=\"wp-image-5881\" srcset=\"https:\/\/pwip.co\/blogs\/wp-content\/uploads\/2024\/08\/onions-1024x536.png 1024w, https:\/\/pwip.co\/blogs\/wp-content\/uploads\/2024\/08\/onions-300x157.png 300w, https:\/\/pwip.co\/blogs\/wp-content\/uploads\/2024\/08\/onions-768x402.png 768w, https:\/\/pwip.co\/blogs\/wp-content\/uploads\/2024\/08\/onions.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Summary of Price Changes (August 3 &#8211; August 10, 2024)<\/strong><\/h4>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Commodity<\/th><th>Location<\/th><th>Aug 3 Price<\/th><th>Aug 10 Price<\/th><th>Price Change<\/th><th>Daily Arrival (Aug 10)<\/th><\/tr><\/thead><tbody><tr><td>Onions (per quintal)<\/td><td>Lasalgaon APMC<\/td><td>Rs 2,725<\/td><td>Rs 3,300<\/td><td>+21%<\/td><td>6,000 quintals<\/td><\/tr><tr><td>Tomatoes (per crate)<\/td><td>Pimpalgaon APMC<\/td><td>Rs 461<\/td><td>Rs 350<\/td><td>-30%<\/td><td>24,000 crates<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Current Price Range:<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Minimum Wholesale Price:<\/strong>&nbsp;Rs 1,951 per quintal<\/li>\n\n\n\n<li><strong>Maximum Wholesale Price:<\/strong>&nbsp;Rs 3,368 per quintal<\/li>\n\n\n\n<li><strong>Total Quantity Auctioned on August 10:<\/strong>&nbsp;6,000 quintals<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Factors Behind the Price Hike<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Reduced Supply:<\/strong>&nbsp;The ongoing monsoon season has led to a decline in the arrival of onions at Lasalgaon APMC. The quantity of onions arriving at the market has dropped to 9,000 quintals per day from the usual 15,000 quintals.<\/li>\n\n\n\n<li><strong>Increased Demand:<\/strong>&nbsp;Despite the reduced supply, demand for onions has surged both in domestic and export markets. Export demand, particularly from Sri Lanka, has risen significantly, contributing to the price hike.<\/li>\n<\/ul>\n\n\n\n<p>Onion trader Manoj Jain commented on the situation, stating, &#8220;The combination of reduced supply due to rains and increased demand, especially from export markets, has driven up prices.&#8221;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>The Ban&#8217;s Impact<\/strong> <\/h4>\n\n\n\n<p>On December 7, 2023, the Central government imposed an export ban on onions to combat inflation, a move criticized by experts. Yogesh Bidwai, author of a Marathi book on the onion business, explained, \u201cTo keep inflation under control, the government banned onion exports. As a result, the prices fell, and farmers suffered.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><a href=\"https:\/\/app.pwip.co\/?utm_source=Blog+&amp;utm_medium=banner&amp;utm_campaign=Blog-App\"><img decoding=\"async\" width=\"1024\" height=\"256\" src=\"https:\/\/pwip.co\/blogs\/wp-content\/uploads\/2024\/03\/Blog-Banner-3-1024x256.png\" alt=\"Shipping Line, Export, Spices Exports, shipment, container, onion crisis\" class=\"wp-image-5612\" style=\"aspect-ratio:4;width:736px;height:auto\" srcset=\"https:\/\/pwip.co\/blogs\/wp-content\/uploads\/2024\/03\/Blog-Banner-3-1024x256.png 1024w, https:\/\/pwip.co\/blogs\/wp-content\/uploads\/2024\/03\/Blog-Banner-3-300x75.png 300w, https:\/\/pwip.co\/blogs\/wp-content\/uploads\/2024\/03\/Blog-Banner-3-768x192.png 768w, https:\/\/pwip.co\/blogs\/wp-content\/uploads\/2024\/03\/Blog-Banner-3-1536x384.png 1536w, https:\/\/pwip.co\/blogs\/wp-content\/uploads\/2024\/03\/Blog-Banner-3.png 1584w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Post-Ban Policies and Their Fallout<\/strong><\/h4>\n\n\n\n<p>Recognizing the political backlash as Lok Sabha elections approached, the BJP-led government lifted the ban on May 4, 2024. However, the new policy imposed a minimum export price of $550 per tonne and a 40% export duty. This translated to Indian onions selling for up to Rs.70,000 per tonne in international markets, compared to $500 per tonne for onions from other countries. Consequently, Indian onions struggled to compete internationally.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Limited Relief Measures<\/strong> <strong>to decrease the impact of Onion Crisis<\/strong><\/h4>\n\n\n\n<p>To mitigate the crisis, the Maharashtra government announced the procurement of onions by NAFED in February 2024. Yet, with only two lakh tonnes procured against an estimated 50 lakh tonnes in farmers&#8217; yards, the relief was minimal. The procurement price of Rs.2,410 per tonne was substantially lower than the market rate of Rs.3,500. Additionally, a Rs.300 per quintal subsidy was introduced but later limited to 200 quintals per farmer, offering little solace.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h4>\n\n\n\n<p>Maharashtra&#8217;s onion farmers continue to face a challenging environment despite political assurances and policy changes. With elections on the horizon, the effectiveness of these measures and the government&#8217;s ability to address the real issues affecting farmers will be tested. The persistent disconnection between policy decisions and the on-ground realities of farmers underscores the need for more substantial and effective interventions.<\/p>\n\n\n\n<p>To understand more, How indian exporters are tackling this situation, Click here:&nbsp;<a href=\"https:\/\/pwip.co\/blogs\/indian-exporters-requests-for-national-shipping-line\/\">Indian Exporters Requests for National Shipping Line to Enhance Global Competitiveness<\/a><\/p>\n\n\n\n<p>Check more of our&nbsp;<a href=\"https:\/\/pwip.co\/blogs\/\">Blogs<\/a>&nbsp;&amp; Do Follow us on Our Social Media channels to stay ahead in your rice business<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The onion crisis in Maharashtra has become a significant issue, especially for the farmers who are bearing the brunt of misguided inflation control policies. The Central Government&#8217;s decision to lift the ban on onion exports but impose steep export duties has backfired, making Indian onions too expensive for the global market. This has not only [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":5882,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[76,88,87],"class_list":["post-5879","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all","tag-export-2","tag-onion","tag-onion-export"],"jetpack_featured_media_url":"https:\/\/pwip.co\/blogs\/wp-content\/uploads\/2024\/08\/Blog-16.png","_links":{"self":[{"href":"https:\/\/pwip.co\/blogs\/wp-json\/wp\/v2\/posts\/5879","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pwip.co\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pwip.co\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pwip.co\/blogs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/pwip.co\/blogs\/wp-json\/wp\/v2\/comments?post=5879"}],"version-history":[{"count":4,"href":"https:\/\/pwip.co\/blogs\/wp-json\/wp\/v2\/posts\/5879\/revisions"}],"predecessor-version":[{"id":5885,"href":"https:\/\/pwip.co\/blogs\/wp-json\/wp\/v2\/posts\/5879\/revisions\/5885"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pwip.co\/blogs\/wp-json\/wp\/v2\/media\/5882"}],"wp:attachment":[{"href":"https:\/\/pwip.co\/blogs\/wp-json\/wp\/v2\/media?parent=5879"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pwip.co\/blogs\/wp-json\/wp\/v2\/categories?post=5879"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pwip.co\/blogs\/wp-json\/wp\/v2\/tags?post=5879"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}