Onion prices are seeing a significant decline as an influx of summer and red onions arrives in the market. The average price of onions, which had previously soared to Rs 25-35 per kilogram, has dropped sharply in recent days. Traders report a decrease of Rs 8 to 10 per kilogram since last week in the APMC market, causing concern among onion farmers.

The arrival of red and summer onions has been much higher than the demand, leading to an oversupply. As a result, onion prices are falling. Initially, onions were fetching an average price of Rs 30 to 40 per kilogram in the market committees.

However, this price has dropped to Rs 9 to 22 per kilogram in just a week. Today, 51 trucks and 61 tempos, totalling 112 vehicles, brought in 25,990 sacks of onions to the APMC Vashi market, sourced from Nashik, Ahmednagar, Pune, Satara, and Sangli.

According to Manohar Totlani, a trader at APMC Vashi, onion production in key states like Maharashtra, Rajasthan, Madhya Pradesh, and Gujarat has risen by more than 30 per cent compared to last year, contributing to the price decline. The abundance of summer onions in the market is exacerbating the situation.

As the arrival of summer onions continues to increase, farmers are facing growing concerns. Sanjay Patil, an onion farmer, noted that the price has dropped by Rs 8 to 10 per kilogram in just one week, and with further increases in supply, there is a fear that prices could fall even more in the coming days, leading to significant financial losses for farmers.

Currently, summer and red onions are being sold at an average of Rs 12 to 15 per kilogram, which is not enough to cover the cost of production. Farmers are calling for the central government to intervene by reducing the 20 per cent export duty on onions and offering assistance to mitigate their losses.

The instability in the onion market is also impacting exports. India’s position in the global onion market remains unstable, leading to a loss of nearly Rs 10 crore in onion exports compared to last year. While production costs continue to rise, farmers are facing financial hardship as the prices they receive for their crops are falling.

The state's onion cultivation for rabi and summer crops has increased by 70,000 hectares compared to last year, now covering 5 lakh hectares. The rabi season is expected to produce an estimated 110 lakh tons of onions. However, the state’s total onion storage capacity is only 35 lakh tons, leading to fears of a glut in the market and a potential price crash.

Traders and farmers are urging the central government to reconsider its export policies and reduce the 20 per cent export duty on onions to stabilize the market. Moreover, since summer onions can be stored for up to 8 months, large traders are buying them at lower prices, stocking them, and later selling them at higher rates once production declines. This practice is driving the price of onions further down, creating more challenges for farmers.