Lack of Storage Infrastructure Drives Onion Crisis in Karnataka

  • Karnataka’s onion farmers are facing major losses despite a bumper harvest, as poor storage infrastructure forces them to sell at low prices. Wholesale onion rates in Bengaluru have dropped to ₹14–₹21 per kg, while retail prices hover around ₹25–₹28—far below the ₹100 per kg often seen during lean seasons.
  • As India’s second-largest onion producer, Karnataka grows nearly 39 lakh tonnes annually but can store only 3.75 lakh tonnes. This lack of storage discourages rabi and summer cultivation, despite those being ideal growing periods due to better yield and shelf life.
  • B. Ravi Shankar of the Potato-Onion Merchants’ Association suggests building 10,000-tonne storage units in every district to stabilize supply and prices. Currently, Bengaluru’s APMC handles over 41,000 bags daily, mostly from Maharashtra, where onion prices remain slightly higher.
  • Without improved storage, both farmers and consumers will continue to suffer from seasonal price swings.

Source: deccanherald