Market Turmoil: Crashing Onion Prices Leave Farmers in Tears Amid Rising Costs
Market
Heavy production followed by unseasonal rains and extreme heat has led to a drastic drop in onion prices at the Pune Market Yard, leaving local farmers unable to recover basic cultivation costs
May 14, 2026 | Pune: The agricultural landscape in Maharashtra is currently overshadowed by a severe crisis as onion producers face the double blow of plummeting market rates and skyrocketing production expenses.The crisis was triggered by a series of climate-related setbacks. While the state saw a bumper crop this year, unseasonal rains in March damaged the harvest just as it reached maturity. This “water-touched” onion cannot be stored for long durations, forcing farmers to flood the markets simultaneously. Furthermore, the record-breaking heatwaves of the past two months have compromised the quality of the produce, causing rapid degradation and rotting in transit.
Market data reveals a stark disparity between wholesale and retail prices. In the Pune APMC, daily arrivals have surged to 80-90 trucks, driving wholesale rates down to a dismal ₹7 to ₹12 per kg (₹70–₹120 per ten kg). Meanwhile, retail consumers continue to pay between ₹20 and ₹25 per kg, indicating that the profit is failing to reach the primary producer. Trader Ritesh Poman noted that the lack of export-quality stock-due to the heat-damaged texture has also hampered shipments to Gulf countries, further depressing domestic prices.
With seed, fertilizer, and labor costs hitting new highs, the current market realization represents a net loss for every quintal sold. Without adequate cold storage facilities or a stable export policy, farmers find themselves trapped in a cycle of distress sales. As the supply continues to outweigh the demand for lower-grade produce, the farming community is calling for urgent government intervention to stabilize prices and provide compensation for the weather-induced crop damage.
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