Are farmers benefiting from soaring onion prices?

‘Most of the time they are at the mercy of brokers and merchants’

October 25, 2013 02:41 pm | Updated 02:41 pm IST - HUBLI:

Onion prices have been on the rise for the last three months. File Photo

Onion prices have been on the rise for the last three months. File Photo

Are farmers getting benefitted from the soaring prices of onion?

Onion prices have been on the rise for the last three months. This week (till Thursday), the price of Teligi onion variety and a local variety of onion at the Hubli Agricultural Produce Marketing Committee (AMPC) yard ranged from Rs. 500 to Rs. 5,000 a quintal. According to market statistics, the average price of both the varieties ranged from Rs. 1,800 to Rs. 2,000 a quintal.

“Most of the time in such situations, irrespective of the market conditions, it is the brokers, merchants, retail traders, and vendors who make most of the profit,” district secretary of the Communist Party of India (Marxist) B.S. Soppin, who has been involved in several pro-farmer movements, said.

He said as farmers lack the knowledge about grading different types of onion, buyers and brokers form a cartel and deceive them.

“Even good quality onions are sometimes categorised as low-grade onion, and accordingly, a lower price is fixed. But eventually, the crop is sold at a price close to the day’s highest price,” he said.

According to Mr. Soppin, even retailers make a good profit. “Ultimately, the farmer, who toils in the field, makes the least profit while brokers, merchants and retailers walk away with a good margin without much effort,” he said.

In the Bangalore market, the average price of local and other varieties of onion, barring the Bengaluru Sanna variety, this week ranged from Rs. 4,000 to Rs. 4,875 a quintal.

The average price of Bengaluru Sanna ranged from Rs. 2,100 to Rs. 2,500 a quintal.

During the same period, the average retail price of onion ranged from Rs. 60 to Rs. 80 a kg.

For B.M. Hanasi, who took to farming after retiring from government service, the soaring onion prices is nothing short of a conspiracy. “It is good that farmers are getting over Rs. 2,000 a quintal. But they are at the mercy of brokers and merchants who have formed a cartel and have a monopoly. And it is they who make the most, whatever might be the situation,” he said.

According to Mr. Hanasi, the situation could be tackled easily if the administration intervenes. But no one wants to do it, he said. As a result, on the pretext of providing “a fair price” for farmers, others make profit, he said.

Farmers in rain-fed areas are harvesting onion early this year to get a better price. They are sure of the onion prices coming down in November when arrivals would peak at the Hubli market from Bijapur, Bagalkot, Dharwad and other districts where the crop is cultivated in rain-fed areas.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.