Source : INDIA TODAY NEWS
Onion prices are rising sharply, with retail rates reaching up to Rs 60 per kg in some markets. The increase has come even though the country has produced more onions than it needs.
The main problem, according to the information available, is not a shortage of onions, but heavy losses caused by unseasonal rain and rotting during storage.
This comes after red rot disease, often described as the ‘cancer’ of sugarcane, affected sugarcane crops and pushed up sugar prices. Now, onions are facing their own weather-related trouble.
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HOW THE RAIN DAMAGED ONIONS
India produced 307.37 lakh tonnes of onions this year, which is higher than domestic demand. But heavy rain during the harvesting of the rabi crop changed the situation.
The unseasonal rain in March and April caused waterlogging in fields. A large amount of moisture entered the layers of the onions. When these onions were later stored, the hidden moisture became a major problem.
The heat and humidity in June and July made conditions worse. Water trapped between the layers allowed fungus to develop, causing the onions to rot from inside.
ONION WASTAGE RISES
Normally, around 25% of onions are lost every year. This year, however, the damage is estimated to have risen to 35% to 40% because of the heavy moisture and subsequent rotting.
Around 110 to 120 lakh tonnes of onions are estimated to have been lost to rot.
This has reduced the amount of good-quality onions available for sale in mandis. With less usable produce reaching the market, prices have come under pressure.
WHY FARMERS’ COSTS HAVE INCREASED
India consumes around 17 lakh metric tonnes of onions every month, or about 204 lakh tonnes a year.
With production at around 307 lakh tonnes, the supply initially appeared comfortable. But the loss of a large part of the crop has changed the calculation.
When 35% to 40% of the stored onions are lost, the entire cost of growing the crop has to be recovered from the remaining good onions. This includes the cost of sowing, fertilisers, labour and cultivation.
As a result, the net cost of the good onions reaching the mandis has risen to around Rs 30 to Rs 32 per kg.
FARMERS SEEK BETTER PRICES
Bharat Dighole, president of the Maharashtra Onion Growers Association, said unseasonal rain during harvesting and large-scale rotting have increased the burden on farmers.
According to Dighole, farmers need at least Rs 40 per kg as a wholesale price to make a profit after taking their higher costs into account.
He also warned that any attempt by the government to force onion prices down through market intervention could lead to a major farmers’ protest in Maharashtra.
Maharashtra is the country’s biggest onion-producing state and accounts for around 43% of total onion production.
GOVERNMENT BRINGS IN ‘KANDA EXPRESS’
To control rising onion prices, the central government has decided to release its buffer stock into the market.
Special ‘Kanda Express’ trains are being used to transport thousands of tonnes of onions to mandis in major cities, including Delhi, Chennai, Kochi and Guwahati.
The government is bearing the transportation and rotting losses and selling the onions to consumers at a subsidised price of Rs 35 per kg.
The aim is to increase supplies in the market, curb hoarding and bring prices down.
FARMERS FEAR PRICES MAY FALL AGAIN
The government’s move, however, has raised concerns among onion farmers.
Farmers point out that there have been periods when they were unable to recover even their production costs and had to sell onions for just Rs 2 to Rs 4 per kg in mandis.
At that time, they say, there was little support for their losses.
Now, after suffering losses because of the weather and hoping for better prices, farmers are worried that the government’s intervention could bring prices down just when they have started to recover.
Their fear is simple: what looks like a few good days for farmers could once again turn into a difficult period if onion prices fall sharply.
– Ends
SOURCE :- TIMES OF INDIA
