Onion prices in Maharashtra below production cost, govt tells Lok Sabha

Several farmer associations have been demanding procurement at ₹3,000 per 100 kg or compensation for the gap

The average market price of onions in Maharashtra, the biggest onion-growing belt, ranged between ₹900 and ₹1,150 per 100 kg during March to May 2026, the government said in a reply to a question in Lok Sabha on Tuesday.

These prices are significantly below what farmer groups say it costs to produce onions.

According to Bharat Dighole, president of the Maharashtra State Onion Growers Association, the cost of cultivating onions comes to around ₹1,800- ₹2,200 per 100 kg, after accounting for seeds, fertilisers, pesticides, labour, harvesting, packing and transport.

According to him, selling onions at ₹900- ₹1,150 per 100 kg leaves farmers with heavy losses. Several farmer associations have been demanding procurement at ₹3,000 per 100 kg or compensation for the gap.

The low prices in Maharashtra attain significance as the state contributes over 50% of the country’s total crop production single-handedly. As per the agriculture ministry, India’s onion production is estimated at 30.74 million tonnes in 2025-26, of which 15.11 million tonnes is expected from Maharashtra.

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However, the demands for assuring minimum support price (MSP) for onions have fallen on deaf ears.

In its Lok Sabha response, the ministry pointed to the Market Intervention Scheme (MIS), meant for perishable commodities that do not have MSP. The scheme can be invoked when market prices fall by at least 10% compared to the previous normal year and below the economic cost of production. However, procurement is undertaken only if the state government requests it and agrees to share half the losses incurred.

For onions, the Centre said it also operates a separate Price Stabilisation Fund (PSF) under which buffer stocks are built to moderate sharp price swings.

It procured 287,000 tonnes of onions during 2025-26. For the current 2026-27 season, the procurement target has been fixed at 200,000 tonnes, of which 37,000 tonnes have already been purchased.

The parliamentary reply also sought to address concerns over export restrictions, an issue repeatedly raised by onion growers who argue that policy uncertainty depresses domestic prices.

The government said there has been no export duty, minimum export price or export restriction on onions since April 1, 2025.

Data tabled in Parliament show exports recovering after last year’s decline. India exported 1.55 million tonnes of onions in 2025-26, up from 1.15 million tonnes in 2024-25, although shipments remain well below the 2.53 million tonnes exported in 2022-23.