NewsFlash Daily™
19 March
Prices plunge to Rs 6–12 per kg amid global tensions, rising fuel costs and weak demand; farmers from multiple states face severe losses
Davangere: A severe onion price crash has hit Karnataka’s Davangere market, forcing distressed farmers to give away bags of onions for free as prices fall to alarming lows. The sudden drop, reportedly influenced by global geopolitical tensions and rising fuel costs, has left hundreds of farmers struggling to recover even basic transportation expenses.
According to market reports on March 19, onion prices have plunged to just Rs 6 to Rs 12 per kg, triggering panic among farmers who have brought their produce from across the region. While good-quality onions are fetching Rs 10–12 per kg, smaller varieties are being sold at a meagre Rs 6–8 per kg, far below sustainable levels.
Farmers Bear the Brunt as Costs Outweigh Returns
The crisis has deepened as the cost of essential materials like empty onion bags has surged to Rs 18–20, making it more expensive to even package the produce than the price farmers receive in return. This has led to a shocking situation where farmers are forced to hand over onions along with the bag at no cost, just to avoid further losses.
“We are not even recovering our transport and labor costs. It’s heartbreaking to see our crop go to waste,” a distressed farmer said at the market yard.
Global Factors and Fuel Prices Hit Demand
Experts attribute the sharp decline to reduced demand from hotels and bulk buyers, many of whom have scaled down operations due to rising fuel and LPG cylinder prices amid global uncertainties. The slowdown in the hospitality sector has directly impacted onion consumption, worsening the price crash.
Farmers from Multiple Regions Affected
Farmers from districts such as Koppal, Ballari, Vijayapura and Hosapete, along with growers from Andhra Pradesh and Telangana, have transported hundreds of quintals of onions to Davangere, only to face devastating losses.
Adding to their frustration, farmers allege that locally grown onions are not even fetching half the price of produce from Nashik, one of India’s largest onion-producing hubs.
Market Uncertainty Raises Concerns Over Future Stability
The ongoing crisis has sparked concerns about agricultural sustainability and farmer livelihoods, as continuous losses could discourage cultivation in upcoming seasons. With no immediate price recovery in sight, farmers are demanding government intervention, minimum support mechanisms and better market regulation to stabilize prices.
