Chakan onion prices are fluctuating sharply as drought conditions reduce onion cultivation in Maharashtra and delay the arrival of the new crop, leaving the market dependent on stored onions and pushing retail prices as high as Rs 70 per kilogram.
Around 1,000 quintals of onions arrived at the Khed Agricultural Produce Market Committee yard in Chakan. According to market committee chairman Ashok Rakshe and secretary Balasaheb Dhandre, prices ranged from Rs 35 to Rs 43 per kilogram depending on the quality of the produce.
The market’s current volatility is linked to a combination of limited local cultivation, stored onion stocks and supplies arriving from other states. New onions from Madhya Pradesh and Karnataka have begun reaching Delhi and other major markets, contributing to price declines at some local levels even as the broader market remains unstable.
The new crop is not expected to arrive in significant quantities for another one to two months. The report said onion cultivation was severely affected after very low rainfall in June and July. Farmers have estimated that the area under onion cultivation could remain at only 10% to 20% of the usual area because of the shortage of water.
For now, Chakan’s wholesale market is relying largely on onions stored from the previous crop. Traders Manik Gore and Vikram Shinde said traders expect prices could rise in the future because drought conditions may reduce supplies. At the same time, the arrival of onions from Madhya Pradesh and Karnataka is adding to short-term uncertainty over prices.
The fluctuations are creating difficulties for both growers and traders. Farmers are attempting to balance production, transport and storage costs against prices that can change according to arrivals and demand. Growers had expected stronger prices at the beginning of the winter season, but the volume of stored onions and changing market demand have complicated that expectation.
The impact is also visible in retail markets. While wholesale prices in Chakan continue to move up and down, onions are being sold to consumers at Rs 50 to Rs 70 per kilogram. Even small-sized onions, locally referred to as chingli onions, have reached Rs 50 per kilogram, increasing pressure on household budgets, particularly for consumers and workers with limited incomes.
Onion producers have called for the government to review market conditions and take measures to ensure farmers receive fair prices. The next major price movement will depend on the arrival of the new crop, the volume of stored onions released into the market and supplies entering from other producing states.
