Onion prices in Delhi have taken a sharp fall, touching lows between ₹7 to ₹14 per kilogram in wholesale markets. The drop is being attributed to heavy supply from multiple states following the monsoon crop, with market experts stating that the volume has doubled in recent days.
According to Pankaj Goyal, President of the Onion Merchants Association in Delhi, this price decline is a direct result of surplus arrivals from states like Maharashtra, Madhya Pradesh, Gujarat, and Rajasthan.
Not Worth the Transport: Farmers Bear the Brunt of Collapsing Prices
The situation has become so grim that many farmers are incurring losses, with the cost of transporting onions to markets often exceeding the income from sales. Several states have reported a retail price of just ₹2 to ₹4 per kg at the farm gate.
In Karnataka, the distress reached a tipping point as angry farmers dumped their onions on public roads, saying it is better to discard their crop than pay for transport only to receive peanuts in return. Farmers claim that even after harvesting and packaging costs, they are left with almost nothing—or even in deficit.
Retail Prices Remain Stable in Urban Areas, But Middlemen Face Losses
Despite the wholesale collapse, retail prices in urban markets have not fallen proportionately. Consumers are still paying around ₹20–₹25 per kg, raising questions about middlemen markups and logistical inefficiencies.
Traders say that due to the overstocked mandis, they are unable to offload their stock in time, leading to rotting produce and mounting losses.
Need for Minimum Support Price and Transport Subsidies Highlighted
Experts and farmer associations are urging the government to introduce Minimum Support Prices (MSP) for perishable crops like onions, or at least transport subsidies, to prevent such distress cycles.
