Why Maharashtra's onion belt is staring at a deepening farm crisis

As onion prices crashed across Maharashtra's farming belt, the state's top leaders rushed to Delhi seeking urgent intervention. The Centre promised direct procurement, transparent grading and no export ban, but farmers say recurring policy shocks, crop damage and weak prices continue to push them deeper into crisis.

In Short

• Fadnavis met Amit Shah and Shivraj Chouhan seeking urgent relief measures
• Centre agreed procurement should be made directly from farmers, not traders
• Mechanised grading was promised to curb arbitrary rejection of onions

Maharashtra's onion-producing belt is witnessing one of its worst agricultural crises in recent years, with farmers in Nashik, Pune and adjoining regions forced to sell onions at throwaway prices as low as 50 paise to Rs 2 per kilogram in wholesale markets.

The sharp crash in prices has triggered widespread anger among growers, many of whom say they are unable to recover even transportation costs, let alone production expenses.

The crisis has intensified due to a combination of unseasonal rainfall, heatwave conditions, weak export demand and policy uncertainty around onion exports.

Against this backdrop, Maharashtra Chief Minister Devendra Fadnavis, Deputy Chief Ministers Eknath Shinde and Ajit Pawar, along with senior ministers and leaders, rushed to New Delhi on Wednesday for high-level meetings with Union Home and Cooperation Minister Amit Shah and Union Agriculture Minister Shivraj Singh Chouhan to seek urgent intervention.

DELHI MEETING: KEY DEMANDS IN PIPELINE

Following the meeting, Chief Minister Fadnavis said several demands raised by Maharashtra had received a positive response from the Centre.

One of the key demands was that onion procurement by the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) and the National Cooperative Consumers' Federation of India Limited (NCCF) should happen directly from farmers in agricultural markets instead of traders.

According to Fadnavis, the Centre agreed to this proposal. The Maharashtra government also raised concerns regarding the grading process during onion procurement. Farmers have long complained that agencies often reject produce by declaring it "substandard" during manual grading.

Fadnavis said Union Minister Shivraj Singh Chouhan assured the state that mechanised grading systems would be introduced to ensure transparency and prevent arbitrary rejection of onions.

Another major assurance given during the meeting was regarding exports. Fadnavis stated that the Centre had clarified that there would be no export ban on onions and no export surcharge imposed.

Frequent changes in export policy over the past few years have created uncertainty among traders and farmers, often resulting in market instability.

The state government has also demanded that onion procurement by NAFED and NCCF be increased from the proposed 2 lakh tonnes to 10 lakh tonnes. Officials indicated that discussions on this demand were "positive".

The meeting was attended by several Maharashtra leaders, including Sunetra Pawar, Girish Mahajan, Chhagan Bhujbal, Radhakrishna Vikhe Patil and Dilip Walse Patil.

PRICES BELOW PRODUCTION COST

The crisis comes despite the Centre announcing a Minimum Assured Procurement Price (MAPP) of Rs 1,580 per quintal for Rabi onion procurement in Nashik district from May 26.

However, farmers say the price remains grossly inadequate compared to production costs. According to onion growers, the cost of producing onions has risen sharply due to increased spending on fertilisers, pesticides, labour and transportation.

Farmers estimate that onion cultivation currently costs between Rs 20 and Rs 25 per kilogram, while market prices in many APMCs have crashed to between Rs 2 and Rs 6 per kilogram.

In some extreme cases, farmers claimed they received only 50 paise per kilogram after deductions.

The situation has sparked protests across Maharashtra. In Nashik's Chandwad, farmers along with political workers led by MLA Rohit Pawar organised a protest march and road blockade demanding immediate intervention and a fair support price.

WEATHER SHOCK AND MARKET VOLATILITY

Experts said the current crisis is not solely policy-driven. Maharashtra witnessed unseasonal rainfall in several onion-producing regions during the harvesting and storage season.

Market analyst Prabhakar Shinde pointed out that between 2021 and 2025, March repeatedly saw unseasonal rain, but this year the rainfall directly affected key onion-producing talukas. The rain damaged stored onions and reduced their quality, leading to lower market valuations. Heatwave conditions in parts of Maharashtra further aggravated the problem by affecting storage and shelf life.

Shinde also highlighted the structural imbalance in India's onion economy. India consumes nearly 50,000 tonnes of onions daily, translating to around 1.8 crore tonnes annually. Another 20 lakh tonnes are exported each year, while total production stands at around 2.3 crore tonnes. According to him, even a fluctuation of 10 to 20 lakh tonnes in production can dramatically impact market prices.

He further argued that onions should be removed from the Essential Commodities Act framework to reduce excessive government intervention and allow more predictable market operations.

EXPORT UNCERTAINTY HITS FARMERS

Progressive farmer and onion expert Vikram Awchat from Otur in Pune district said India's export market has also weakened over the years due to inconsistent policy decisions.

He noted that Bangladesh was once among the biggest importers of Indian onions. However, after changing its agricultural policy and attempting to become self-reliant in onion production, Bangladesh reduced its dependence on Indian imports. This significantly impacted Maharashtra farmers, who traditionally relied on exports to stabilise prices during bumper production years.

Awchat added that Indian onions continue to have strong demand in Europe and other international markets, but frequent export restrictions, sudden duty hikes and policy reversals by the Centre have created uncertainty among exporters and buyers.

HUMAN COST OF THE CRISIS

Beyond economics and policy debates, the onion price crash has pushed farming families into severe distress. In Otur village of Pune district, woman farmer Balisha Chavan described her ordeal after selling 41 quintals of onions at Rs 2 per kg. Speaking about her losses, she said the money earned was insufficient to cover labour, transport and cultivation costs. With schools reopening next month, Chavan said she does not even have enough money to buy notebooks, textbooks and school uniforms for her children.

Her story has become symbolic of the growing desperation among onion farmers across Maharashtra. As the state waits for concrete implementation of the Centre's assurances, farmers say temporary procurement measures alone will not solve the recurring onion crisis. They are demanding a stable export policy, scientific storage infrastructure, transparent procurement systems and long-term market reforms to prevent such collapses in the future.

- Ends