What Ails Onion Farmers

April 10, 2026

Onion farmers across Maharashtra have called for immediate government intervention as farm gate prices of the crop have collapsed, driven in part by disruptions to exports amid the ongoing conflict in West Asia, a key destination for Indian onions.

The sudden contraction in overseas demand has exacerbated a domestic glut, pushing prices to levels that, farmers say, make even harvesting and transportation unviable. Prices in Maharashtra’s mandis (wholesale markets) have crashed to as low as Rs 300-Rs 800 per quintal, a level that farmers say is devastating given that the average cost of production stands at approximately Rs 1,800 per quintal.

At these rates, growers cannot recover even basic post-harvest expenses. In several places, the situation has deteriorated to the point where farmers have been forced into distress sales, and some have resorted to dumping onions on roadsides in desperation, says Bharat Dighole, president of the Maharashtra State Onion Growers Farmers Organisation.

In a letter to Maharashtra Chief Minister Devendra Fadnavis, Dighole, on behalf of farmer groups, has urged the state government to forward a proposal to the Union government for activation of market interventions scheme (MIS), and has insisted that the scheme not be limited to the district level but be rolled out at the taluka or subdistrict level — ensuring that procurement centres are established in every onion-growing taluka.

Under the scheme, the government would step in as a buyer in the market, which would curb panic selling, bring price stability, and check the artificial depression of rates by traders.

MIS is implemented at the request of a state/UT government, which is ready to bear 50 per cent of the loss (25 per cent in case of north-eastern states), if any, incurred on its implementation. Its objective is procurement of horticultural/agricultural commodities which are perishable in nature and are not covered under any price support scheme. It protects the growers of these commodities from making distress sale in the event of a bumper crop during the peak arrival period when the prices tend to fall below economic levels and cost of production.