Onion farmers buy seeds from growers

PUNE: Onion farmers have come up with a novel way to buy seed that often sells at a huge premium when onion prices spiral. They have signed contract farming deals with growers in Vidarbha and Marathwada for regular supply of onion seed.


This is the first time that Indian farmers are doing contract farming for other farmers and also being paid more than the corporate players. Disappointed with the government as well as the market in addressing their woes, the onion farmers have decided to rely on local demand, but with a professional touch. Last year, when consumers were paying high price for onions, the farmers were also paying record prices for onion seeds --the onion seed prices had increased three to five times.

The seeds were not only priced too high, but they were not available as seedling plots were washed away in unseasonal rains. So, the Vegetable Growers Association of India has decided to try a new model of assuring supply of good quality seeds.