Maharashtra announces long-term measures to stabilise onion prices

• Govt to strengthen value chain through processing, storage and procurement initiatives
• State plans FPO-led processing centres to expand value addition, reduce price volatility

The Maharashtra government has announced a series of long-term initiatives aimed at strengthening the onion value chain and reducing recurring price volatility. Speaking in the Legislative Council, Marketing Minister Jaykumar Rawal said the state is focusing on expanding processing capacity, improving storage infrastructure, and promoting value addition to provide more stable returns to onion growers. The announcement followed a discussion on declining onion prices raised by Legislative Council member Vikram Kale, with members Pravin Darekar, Satej Patil and Neelam Gorhe also participating.

Procurement and export support

Minister Rawal said weak international demand had previously affected onion exports, resulting in lower domestic prices. He noted that following discussions between Chief Minister Devendra Fadnavis and the Central government, procurement targets were increased, export support measures were introduced, and procurement prices were revised upward to support farmers.

Processing and storage expansion

Maharashtra contributes around 35-40% of India’s total onion production, making it the country’s largest onion-producing state. To strengthen post-harvest management and reduce dependence on fresh market sales, the government plans to promote onion dehydration units, onion powder manufacturing, and other processing industries, creating additional value-added avenues for growers.

The minister added that onion storage infrastructure has been expanded across the state to minimise post-harvest losses. Going forward, regional onion processing centres will be established through Farmer Producer Organisations (FPOs) at the taluka and district levels, bringing processing facilities closer to major production clusters.

Market implications

The government is shifting its focus from short-term price interventions to strengthening the onion supply chain through processing, storage and value addition. Current market prices have improved from earlier lows, while continued investment in processing infrastructure, storage capacity and FPO-led processing centres is expected to enhance market resilience and reduce the impact of seasonal price volatility over the longer term.