Maharashtra Onion Farmers Get Relief as Indian Government Boosts Procurement and Storage
24 July 2025, New Delhi: In response to a question raised in the Lok Sabha today, the Ministry of Agriculture and Farmers Welfare addressed the growing concerns of onion farmers in Maharashtra, particularly from the major producing districts of Nashik, Pune, and Dindori. Several Members of Parliament representing these regions had highlighted the severe losses farmers are facing due to a drastic fall in onion prices, which has forced many to reduce their cultivation area drastically.
Rising Cultivation but Falling Prices
The Ministry noted that despite a 46% increase in the area under onion cultivation in Maharashtra during the 2024-25 season—rising to 9.78 lakh hectares from 6.67 lakh hectares the previous year—the wholesale price index (WPI) for onions has seen a sharp decline of over 33%, from 279.2 in June 2024 to 185.7 in June 2025. This significant price drop has created financial distress for farmers, with market prices falling below production and transportation costs.
Government Measures to Support Farmers
To mitigate the impact of price volatility, the Government has been implementing the Market Intervention Scheme (MIS) under the Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA), which aims to protect farmers from distress sales during bumper crops. Starting from the 2024-25 season, a new component called Price Differential Payment (PDP) has been introduced, allowing direct payments to farmers to cover the gap between the Market Intervention Price (MIP) and the actual selling price.
The Department of Consumer Affairs, through agencies such as the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and the National Cooperative Consumer’s Federation of India Ltd. (NCCF), is actively procuring onions to build buffer stocks. For the upcoming Rabi 2025 season, the government has set a procurement target of 3 lakh metric tonnes, of which over 1 lakh metric tonnes have already been procured primarily from Maharashtra.
In addition, to enhance farmer incomes and promote exports, the Government has removed the 20% export duty on onions effective April 2025. This move is expected to open international markets and help stabilize domestic prices.
Long-term reforms are also under consideration. The Government is evaluating options such as introducing MSP-like support mechanisms for onions and including onion crops under crop insurance schemes like the Pradhan Mantri Fasal Bima Yojana (PMFBY), subject to notifications by state governments.
To address post-harvest losses and facilitate better marketability, financial assistance is being provided under the Mission for Integrated Development of Horticulture (MIDH) for the establishment of cold storage facilities, reefer transport vehicles, and market infrastructure in major onion-producing areas like Nashik.
Minister of State for Agriculture and Farmers Welfare, Ramnath Thakur, reaffirmed the Government’s commitment to supporting onion farmers through these measures aimed at stabilizing prices and ensuring fair remuneration.
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