Since September 2025, thousands of farmers in Maharashtra have been protesting over the sharp fall in onion prices. Maharashtra is India’s largest onion-producing state. The current distress stems from a steep drop in market prices. Farmers seek immediate government aid of ₹1,500 per quintal to cover losses. Experts point to systemic issues in production, storage, and export policies as root causes.
Reasons Behind the Farmer Protests
Farmers currently earn between ₹800 and ₹1,000 per quintal for onions. Production costs range from ₹2,200 to ₹2,500 per quintal. This results in heavy financial losses. Stored Rabi onions have deteriorated, forcing farmers to sell at even lower prices. The government’s release of buffer stock at cheaper rates further depresses market prices. Farmers demand that NCCF and NAFED stop selling their stocks in urban markets to prevent price crashes.
Role of Government Price Stabilisation Policy
The government maintains a buffer stock of onions under the Price Stabilisation Fund. This stock is used to control price volatility and ensure consumer affordability. NCCF and NAFED procure and store onions to manage supply. However, releasing these stocks during times when farmers are already struggling to sell worsens their crisis. The policy’s current implementation is criticised for harming farmers’ incomes.
Export Trends and Market Impact
Onion exports from India peaked at 25.25 lakh tonnes in 2022-23 but dropped to 11.47 lakh tonnes in 2024-25. This decline has reduced India’s global market share. Key importers like Bangladesh and Sri Lanka have shifted to other suppliers. Experts call for a stable and credible export policy to regain trust. Exporters urge government incentives to boost competitiveness and restore India’s position as a leading onion exporter.
Proposed Solutions and State-Level Initiatives
Farmers and experts recommend streamlining export policies and building importer trust. Discussions with major buyers are needed to secure steady markets. The Andhra Pradesh government’s procurement scheme at ₹1,200 per quintal is cited as a positive model. Maharashtra is urged to adopt similar measures to protect farmers’ incomes and incentivise onion cultivation.
Challenges in Onion Storage and Quality
The quality of stored Rabi onions has declined due to poor storage conditions. This deterioration reduces market value and increases losses. Better storage infrastructure and management practices are necessary. Without improvements, farmers will continue to face distress despite production volumes.
Economic and Social Impact on Farmers
The low prices threaten farmers’ livelihoods and rural economies. Many small and marginal farmers face mounting debts. Prolonged distress may lead to reduced onion cultivation in future seasons. This could affect domestic supply and export potential.
Questions for UPSC:
- Critically analyse the role of government buffer stocks in agricultural price stabilisation with reference to onion markets in India.
- Explain the impact of export policies on agricultural commodity markets and farmers’ incomes. How can stable export policies enhance India’s global trade competitiveness?
- What are the challenges faced by Indian farmers due to price volatility in perishable crops? Discuss with suitable examples.
- Underline the significance of agricultural marketing cooperatives in India. Comment on their role in protecting farmer interests and stabilising prices.
