When Union Agriculture Minister Shivraj Singh Chouhan announced on Friday that the Centre would begin procuring onions at Rs 12.35 per kg through NAFED (National Agricultural Cooperative Marketing Federation of India), the move was intended to provide relief to distressed farmers reeling under a price crash. For onion growers in Maharashtra, however, the announcement has done little to lift the gloom.

The Maharashtra State Onion Growers’ Association has opposed the rate, calling it insufficient and far removed from the ground reality of production costs.

“The announced rate does not even cover what it costs us to grow the crop. Between fertilisers, labour, transport, and other expenses, the average cost of production works out to roughly Rs 18 to Rs 20 per kg. At Rs 12.35, we cannot even recover the input cost. The floor price for procurement must be at least Rs 30 per kg – anything less, and farmers will not be able to repay their loans or keep their households running,” said Jitendra Solanke, an onion grower from Satana taluka in Nashik, who had recently been compelled to sell his produce at a mere 50 paise per kg at the Satana APMC.

Solanke also flagged delays in rolling out the procurement. “The announcement was made on Friday, but procurement has not begun on the ground. If the Centre takes too long, traders will end up being the main beneficiaries – most farmers have already sold their stock or are continuing to sell at APMC mandis out of sheer compulsion,” he said.

The backdrop: A market in freefall

The price crash has been attributed to a combination of bumper production and a disruption in export markets. Chouhan, speaking at a PM Awas Yojana-Rural beneficiary event in Satara, co-chaired by Maharashtra Chief Minister Devendra Fadnavis, said he had received a call from Fadnavis flagging the crisis, triggered by sluggish exports to Bangladesh and certain Middle Eastern countries amid the ongoing West Asia conflict.

“From today, NAFED will begin procuring onions at Rs 12.35 per kg. We will extend every possible support to farmers, and I have directed officials to ensure full transparency in the procurement process,” Chouhan said at the event.

Fadnavis, in turn, acknowledged the gravity of the situation. “Farmers are in acute distress. Onion is a perishable commodity with a short shelf life, which makes storage and procurement especially difficult. Some farmers have been forced to sell at prices as low as Rs 1 per kg, in certain cases, even 50 paise, at APMCs. There have also been reports of growers abandoning their produce at farms because the returns make transportation pointless,” he said, adding that the Centre responded swiftly once the state raised the alarm.

‘Inadequate price rate’

Bharat Dighole, President, Maharashtra State Onion Growing Farmers Association, said the procurement price fails to account for the steep rise in input costs and represents a step backwards compared to previous years.

“We demand a minimum procurement price of Rs 3,000 per quintal. Additionally, farmers who were forced to sell their onions at throwaway prices in APMC markets over the past several months should be given a compensation subsidy of at least Rs 1,500 per quintal,” Dighole said.

He also drew attention to the declining procurement target. While 3 lakh tonnes were procured last year, the current year’s target has been set at 2 lakh tonnes – to be split equally between NAFED and National Cooperative Consumers’ Federation (NCCF). “They are already procuring less, and at a lower price. Both the volume and the rate are going in the wrong direction,” he said.

Pointing to previous years’ data, Dighole noted that in 2025, onions were procured at Rs 1,500 to Rs 1,634 per quintal, while in 2024, the average procurement price for Rabi onions stood at Rs 2,833 per quintal. Going further back, after the steep price crash of August 2023, Fadnavis, then serving as deputy chief minister, had indicated that procurement would be conducted at Rs 2,410 per quintal.

“Now, the government has fixed a rate that is less than half of what was promised just two years ago – even as production costs have risen considerably. This is a direct contradiction of what was committed to farmers,” Dighole said.