Perambalur shallot farmers in tears as market glut brings procurement price down to Rs 10/kg

Farmers like Ajith hoped this would lead to announcement of a minimum support price (MSP) for the crop or proper marketing mechanism.
Farmers in Perambalur district cultivated shallots on nearly 5,000 hectares in the season beginning September last year
Farmers in Perambalur district cultivated shallots on nearly 5,000 hectares in the season beginning September last year Photo | Express
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PERAMBALUR: Surplus yield this harvest season has left shallot farmers in the district in tears as they say the supply exceeding demand in the market has caused procurement price to come down as low as Rs 10/kg as against the up to Rs 40/kg offered during the same period last year.

Complaining of either having to store their harvest in the hope of price correction or sell the crop at the “throwaway” prices, farmers seek urgent steps from the district administration such as facilitating direct procurement of their crop that, they pointed out, secured the Geographical Indication (GI) tag only last year.

With the crop cultivation usually taken up in three cycles annually, farmers in the district raised shallots on nearly 5,000 hectares in the season beginning September last year. With it currently being peak harvest for the cycle’s cultivation, farmers say they are getting a yield of nearly 100 sacks, weighing 50 kg each, per acre.

While this is better than the yield of around 60 sacks per acre farmers reported from cultivation taken up on about 4,500 hectares during the same time last year, they say the surplus has led to a glut in the market, making the procurement price quote fall in the Rs 10-Rs 28/kg bracket depending on quality. Last year, farmers say they received Rs 30 to Rs 40 per kg for their harvest.

Mentioning shallot prices changing every season and bemoaning a proper marketing system, P Ajith, a farmer from Adaikkampatti, said, "For many years, we have not even recovered our production costs. This year, the yield was good on my two acres, but the price offered is very low. Traders procure shallots from us at very low prices and sell them in the market for as high as Rs 50 to Rs 60 per kg. We believed that the GI tag and government support would improve our livelihood but our hopes have been shattered."

It may be noted that early last year, the Chettikulam small onion, cultivated in villages under Alathur and Perambalur blocks, was granted the GI tag in recognition of its flavour and quality. Farmers like Ajith hoped this would lead to announcement of a minimum support price (MSP) for the crop or proper marketing mechanism.

Meanwhile, another farmer, S Nehru of Nattarmangalam, said, "I spent Rs 60,000 to Rs 70,000 per acre. With the current price, selling now will only result in losses, as we will not even recover the production cost. I am forced to store the shallots for up to three months until prices improve. Without immediate intervention, many farmers may abandon shallot cultivation."

Farmers urge the district administration to intervene by facilitating direct procurement, bringing in traders from other districts, eliminating middlemen, and establishing storage and processing facilities. When contacted, District Collector N Mirunalini told TNIE, "We are planning to convene a meeting with officials from the agriculture and marketing departments to ensure better prices for shallots."

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