Onion farmers of Maharashtra are not getting fair price for their crop at this time. The Central Government has admitted in the Lok Sabha that farmers in many areas of the state are forced to sell onion at a price lower than its production cost. This information was given during a written reply in Parliament. Farmers say that the current market price is not covering the cost of farming, due to which they are continuously suffering financial losses.
According to the government, during March to May 2026, the average wholesale price of onion in the mandis of Maharashtra was Rs 900 to Rs 1,150 per 100 kg (about Rs 9 to 11.5 per kg). Farmer organizations say that at this price even the costs like seeds, fertiliser, irrigation, labor and transportation cannot be covered, hence farmers have to sell crops at a loss.
What was asked in Parliament?
In the Lok Sabha, the government was asked whether the farmers of Maharashtra are getting less price than the cost of onion production and what steps the government is taking to provide relief to them. In response to this, the government admitted that market prices are low in many places and farmers are facing problems.
What is the demand of farmers?
Farmer organizations demand that the government buy onions at the rate of Rs 3,000 per 100 kg. If this is not possible, then the difference between the production cost and the market price should be given to the farmers as compensation. He says that farming has become a loss-making deal at the current prices.
What steps did the government take?
In view of the problems of farmers, the Central Government has increased the price of onion purchase under Price Stabilization Buffer (PSF) from Rs 1,875 to Rs 2,125 per quintal. This new rate has come into effect from July 4, 2026. The government says that with this, farmers will get better prices and the national onion buffer will also be strengthened.
The government also informed that the purchase of onion from farmers through NAFED and NCCF is continuing. According to the second advance estimate of the Agriculture Ministry, onion production in the country is estimated to be 307.37 lakh metric tons in 2025-26, which is almost equal to last year. This means that at present the availability of onion in the country is sufficient.
What does the government say on the supply?
According to the government, there is currently sufficient stock of onion in Maharashtra, Madhya Pradesh and Gujarat. More than 50 thousand metric tons of onion is arriving every day in the mandis across the country, while more than 30 thousand metric tons of onion is arriving in the mandis of Maharashtra alone every day. The government believes that adequate production and government procurement will provide relief to both farmers and consumers in the times to come.
Why is this issue important?
Maharashtra is the largest onion producing state in the country. The market price here affects the onion prices of the entire country. In such a situation, if farmers continue to get prices lower than the cost, they can reduce production in the next crop. This may affect both the availability and prices of onion in future. Therefore, after this issue was raised in the Parliament, the demand for providing relief to the farmers has become more intense.
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