Large volumes of onions are arriving daily in the mandis of Nashik, Lasalgaon, Pune, and Ahmednagar. However, due to weak demand, farmers are not receiving fair prices for their produce.
Farmers in Maharashtra are facing serious losses due to a sharp decline in onion prices across major agricultural markets in the state. In mandis of Nashik and nearby districts, average onion prices have plummeted to ₹1,200–₹1,300 per quintal, making it difficult for growers to even recover their production costs.
Large volumes of onion are arriving daily in mandis of Nashik, Lasalgaon, Pune, and Ahmednagar. However, due to low buyer turnout and weak demand, farmers are not receiving fair prices for their produce.
Typically, onion consumption dips during the monsoon month of Sawan. Additionally, kharif onions from Rajasthan, Madhya Pradesh, and Karnataka have also started arriving in the market, further reducing demand in Maharashtra and leading to a price slump.
Farmers Urge Government Intervention
Farmer groups have urged both state and central governments to intervene immediately. Bharat Dighole, President of the Maharashtra State Onion Growers’ Association, said that the current market price of onion is a loss-making deal for the farmers and the government should take an appropriate decision on this immediately. He said that the central government should make a permanent policy of not banning onion export. Also, farmers selling onions at a low price should be given a subsidy of at least Rs 1000 per quintal.
Demand for MSP and Direct Purchase from Farmers
Onion growers are calling on the government to announce a Minimum Support Price (MSP) and begin guaranteed procurement at that rate. The Maharashtra Onion Growers’ Association has asked CM Devendra Fadnavis to visit key markets like Lasalgaon to engage directly with farmers and address their concerns.
According to Dighole, the Centre procures onion for buffer stock through two government agencies. He urged the government to directly purchase onions from farmers in APMC markets at a rate of ₹3,000 per quintal.
Central Agencies Lower Procurement Price
Dighole pointed out that central agencies are currently procuring onions at a reduced rate of ₹15–₹16 per kg for buffer stock. “If the government itself buys at such low prices, how will farmers survive the losses?” he asked.
Last year, government agencies purchased onions at an average rate of ₹29 per kg and distributed them to consumers at ₹35 per kg. This year, however, higher production and low market rates have pushed down the procurement price as well.
Causes Behind the Price Crash
As per the second advance estimates of horticulture production for 2024–25, onion output is expected to reach around 307.72 lakh tonnes, a 27% increase from last year’s 242.67 lakh tonnes. Early monsoon harvests led to a surge in market arrivals, overwhelming the supply chain.
Moreover, weak export demand and a dip in domestic consumption have further contributed to the price decline, leaving farmers in distress.