- Market prices at INR 900-1,150/100 kg are nearly half of total production costs
- Farmer organisations demand procurement at INR 3,000 per 100 kg
Onion prices in Maharashtra continued to trade below production costs during March-May 2026, according to the Centre’s reply in the Lok Sabha. Wholesale prices averaged INR 900-1,150 per 100 kg during the period, while farmer organisations said cultivation costs were significantly higher, resulting in continued losses for growers.
The development comes as Maharashtra is expected to contribute nearly half of India’s onion production in 2025-26. While growers have reiterated demands for better price support, the government highlighted measures such as procurement under existing intervention schemes and improving export performance following the removal of export restrictions to address concerns.
Farmers demand higher price support
According to the Maharashtra State Onion Growers Association, the cost of onion cultivation, including seeds, fertilisers, pesticides, labour, harvesting, packing, and transportation, is estimated at INR 1,800-2,200 per 100 kg. With market prices ranging between INR 900 and INR 1,150 per 100 kg, farmers continue to sell below production cost.
Farmer organisations have demanded procurement at INR 3,000 per 100 kg or compensation to bridge the gap between production costs and prevailing market prices. Maharashtra is expected to produce 15.11 million tonnes (mnt) of onions in 2025-26, out of India’s estimated production of 30.74 mnt, reinforcing the state’s importance in the country’s onion supply.
Centre highlights procurement measures, export recovery
The Centre said onions are not covered under the Minimum Support Price (MSP) framework and are instead supported through the Market Intervention Scheme (MIS), which can be invoked when market prices fall at least 10% below the previous normal year’s level and below the economic cost of production. Procurement under the scheme is undertaken only after a request from the state government, which must also share 50% of the losses incurred.
The government added that 287,000 tonnes (t) of onions were procured under the Price Stabilisation Fund (PSF) during 2025-26. For the ongoing 2026-27 season, the procurement target has been fixed at 200,000 t, of which 37,000 t have already been procured.
Addressing concerns over export policy, the Centre reiterated that no export duty, minimum export price, or export restrictions have been imposed on onions since 1 April 2025. Consequently, onion exports increased to 1.55 mnt in 2025-26 from 1.15 mnt in 2024-25, although shipments remained below the 2.53 mnt exported in 2022-23.
Outlook
Onion prices are expected to remain influenced by domestic arrivals, procurement operations, and export demand in the coming months. While government procurement and stable export policies may lend support to the market, prices continuing below production costs are likely to keep farmer demands for stronger price support measures in focus.
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