Prices of wheat, onion, potatoes and other vegetables and crops severely fell amid heatwaves, unseasonal rains and hailstorms, and open market scheme launches in parts of North India. While in Maharashtra, onion prices dropped by 11 percent in a month, the cost of wheat in Delhi-NCR plunged by almost 50 percent in March as compared to the cost on February.

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Besides onion and wheats, other crops including mustard, channa, barley and other vegetable were impacted in some states.

The significant crash in prices came down heavily on farmers who are now struggling to incur even the initial cost they had invested in their crops. Owing to this price drop, many farmers protested in their states demanding appropriate compensation and insurance cover.

"Harvesting is currently going on and half of my crops have been damaged because of wind, rains and hailstorms. Usually, at this time, I get Rs 3,000-4,000 per quintal for my wheat crops, but because of damage...the price stands at Rs 2,000 per quintal," Neerav Karwa, a farmer based out of Rajasthan's Jhalawar, had told CNBCTV-18.com in March-end.

Meanwhile, a grape farmer said he had spent Rs 6 lakh in the current crop and was hoping to earn around Rs 12-13 lakh. But now left with damaged fruits, he said, "The grapes won't be exported now...we can't take them to mandis."

As we move in to April, a monthly report by the government shows how prices of wheat, onion and other crops inched significantly lower in March as compared to that in February. Here's how prices of onion and wheat fared in March in key states they are grown in.

Onions

Major onion-growing states in India are Maharashtra, Madhya Pradesh, Karnataka, Gujarat, Bihar, Rajasthan, Andhra Pradesh, Haryana, West Bengal, and Uttar Pradesh.

State-wise Wholesale Prices Monthly Analysis for onion in March, 2023 (prices in Rs/Quintal)

Price of onions were most affected in West Bengal, Nagaland and Manipur. In February, the wholesale price of onion in West Bengal plunged by nearly 23 percent to Rs 1381.13 per quintal in March 2023.

Maharashtra, where mass protests by farmers was reported, also fared in the worst-affected list. Farmers in Maharashtra carried out a long march from Nashik to Mumbai after the price of onions in parts of the state dropped to Rs 2 per kg. Protests were also reported in other states as well.

ALSO READ | Onion, potato prices nosedive to Rs 2 per kg — what is the issue and what is India doing to help farmers

The prices of onion nosedives because of the unusual rise in temperatures across North-West India in February. Worrying over the crop damage due to heat wave, farmers started selling late Kharif crops along with the Kharif crops, leading to a surplus. And hence, prices of onions dropped. Rains came at a time when the crop was almost ready for harvesting.

Meanwhile, in Nagaland and Manipur, which are not major onion-producing states, prices fell by 23 percent and 28 percent.

Wheat

Major wheat-growing states in India are Uttar Pradesh, Punjab, Haryana, Madhya Pradesh, Rajasthan, Bihar and Gujarat.

State-wise Wholesale Prices Monthly Analysis for wheat in March, 2023 (prices in Rs/Quintal)

Data source: agmarknet.gov.in

The state-wise data shows that wheat prices were the most hit in Chhattisgarh, Maharashtra and Uttar Pradesh where the prices fell by over 29 percent, 15 percent and 12 percent respectively. Meanwhile, the data as per the 'Market wise Wholesale Arrivals' of wheat in Delhi showed that in Najafgarh, prices had dropped by almost 50 percent in March 2023.

ALSO READ | Wheat prices reduced by Rs 200 per quintal, to be effective till March 31

In mid-February, Union Food Secretary Sanjeev Chopra said the prices of wheat in wholesale and retail markets came down by about Rs 5 per kg after the Centre's decision to sell 3 million tonnes of the grain in the open market.

The Centre had banned wheat exports in May last year to control prices, after a slight fall in domestic production and a sharp decline in the Food Corporation of India's (FCI) procurement for the central pool.

On Sunday, news agency PTI reported that wheat crops across over 5.23 lakh hectares in three states — Madhya Pradesh, Rajasthan, and Uttar Pradesh — were affected by untimely rain, hail and strong winds.

First Published:Apr 3, 2023 4:08 PM IST