At a meeting of the Standing Committee of the ZP, a resolution to the effect was moved by Congress member Yeshwant Patil and carried unanimously. The members pointed out that the cost of production of onions had increased and that the decline in the prices below the four digits figure per quintal was resulting in losses to onion growers.

Wholesale prices of onions at the Lasalgaon onion marketyard ranged from Rs 101 to Rs 700 per quintal depending on the size of the quality of the crop, the average price being Rs 550 per quintal. The onion farmers have been agitating in different parts of Nashik district since December 29 when wholesale prices averaged Rs 650 per quintal.

Onion prices hovered around Rs 1,000 per quintal until mid-December when they started plummeting due to increased arrivals. The farmersbegan agitating for a support price of Rs 500 per quintal last week on the grounds that the cost of production had more than doubled this session with the scarcity of seeds pushing up prices.

As the agitation spread, the Congress Party also jumped into the fray demanding that the wholesale prices of onions be fixed at Rs 1,000 per quintal.