Bengaluru: A temporary shutdown of eateries triggered by LPG shortages has accelerated an already steep fall in onion prices across Karnataka, with rates collapsing far below production costs amid oversupply and weak demand. Onion prices have dropped to Rs 500–Rs 1,000 per quintal, while earlier wholesale rates ranged between Rs 1,200 and Rs 2,000. Retail prices have also softened, with 8-10 kg now sold for Rs 100. Farmers in major producing districts, including Vijayapura, Chitradurga, Gadag, Ballari, Koppal, Dharwad, Belagavi, Bagalkot, Haveri and Chikkaballapur, have reported distress sales, with Chitradurga among the worst hit. Srirama Reddy, president, Dasanapura APMC Merchants Association, said demand from the food services sector has weakened sharply. “Some 30% of hotels temporarily closed their business. Besides the state recorded higher production this year due to good rainfall, leading to oversupply compared to previous seasons,” Reddy said. He said even premium produce has seen a steep price correction. “Top quality onions were available at Rs 20 per kg, but now it has fallen to Rs 10. Farmers and traders are suffering heavy losses. If consumption increases when prices are low, it would help stabilise the market,” Reddy said. Traders say the impact has spread beyond onions. Shiva Kumar, an APMC trader, said closure of eateries has hit the vegetable market. “Prices of other vegetables have also dropped,” he said. Export-linked Bengaluru rose onion has also been affected, falling to Rs 600-Rs 800 per quintal, adding to distress in Bengaluru Rural, Chikkaballapur and Kolar districts. Farmer Madhu B from Byraganahalli said: “We harvested 400 bags of rose onion for export to Gulf countries via Chennai. But after the conflict in Iran, prices crashed, so I stored them in the field,” he said. He said storage is limited as produce begins to rot after a month. K Sudhakar, Chikkaballapur MP, has urged the Centre to intervene. He has sought Market Intervention Scheme procurement and exploration of alternative export markets in Europe, North America, Japan and South Korea.
