Workers unload sacks of onion from trucks at an Agricultural Produce Marketing Committee (APMC) yard in Bengaluru on Wednesday.
Credit: PTI Photo
The ongoing ban on onion exports has dealt a blow to farmers and traders in the state, resulting in a significant drop in wholesale prices of onions to as low as Rs 5 per kg for certain varieties.
The Government of India implemented the export ban from December 2023 to March 2024 due to soaring market rates and limited domestic availability.
Ravishankar B, secretary of the Bengaluru Potato and Onion Merchants Association, identified the export ban as a primary factor behind the price decline.
He said: "If the ban is lifted and exports resume, we anticipate a price increase of Rs 5 to Rs 10 per kg."
Countries including Bangladesh, Sri Lanka, and Malaysia traditionally imported substantial quantities of onions from the state, he added.
Hopeful of reaping benefits like last year, many farmers cultivated onion as a second crop, said Mahanthesh, an onion farmer from Challakere, Chitradurga district. "Local farmers sowed too much until October-November, hoping to earn Rs 3,000 and more per quintal, the way they did last year. This has led to surplus supply,” he said.
He said the ban allowed flooding of onions from Maharashtra, preferred for export, further driving down demand for local produce.
At the Agricultural Produce Market Committee (APMC) Yard, Yeshwantpur, onion wholesale prices currently range between Rs 5 and Rs 20 per kilogram, contingent on size and quality.
For the best quality onions, wholesale rates per kg are Rs 15 to Rs 20, Rs 10 to Rs 15 for second quality, and Rs 5 to Rs 10 for small-sized Golta onions.
Contrastingly, the previous month witnessed rates varying from Rs 25 to Rs 44 per kg for different sizes and qualities.
While retail markets in the city display significantly higher rates, a supermarket in Richmond Town offered one kg of onions at Rs 24, another in HAL 2nd Stage sold onions at Rs 35 per kg, and a small grocery store in Shanthala Nagar priced onions at Rs 40 per kg.
A store representative justified the higher price, saying: “We must account for fuel and transportation costs from the APMC Yard.”