Fluctuating market dynamics and bumper produce have reportedly resulted in a Rs 42 billion (€540 mln) dro in earnings of onion farmers as compared to last year, India’s central Agricultural Ministry has stated.

In January this year, about 1.3 million tons of onions was sold through agriculture market produce committees at a price of Rs 13,760 (€177) per ton. In December, 1.11 million tons of onions fetched Rs 13,310 (€171) per ton. And this price is nearly 61% less than the prices gotten last year, says the report.

In Maharashtra, which accounts for nearly one-third of the countrys onion production, prices fell even more sharply. One of the major reasons behind the massive dro is that the production is expected to be higher by 12.48% compared to the last five years average. As against the approximate 21 million ton, farmers are expecting around 23.6 million tons this year.

A senior official from state governments agriculture department told: "There are three types of onions: kharif, late kharif and summer. Though the late kharif onion has a better shelf-life compared to the kharif onion, farmers have to sell them within two to three weeks after harvest at whatever price they get in the market."

"However, the summer crop is likely to bring higher prices this year due to the drought situation prevailing in the state which will hamper production. This might get the farmers a higher price," he added.