Maharashtra unveils INR 500-700 crore onion dehydration plan to manage surplus supply

• INR 500-700 crore onion dehydration project planned in Maharashtra.
• NAFED and NCCF procure 14,000 tonnes against the Centre’s 200,000-tonne target.

State plans large-scale dehydration project to manage surplus onions

The Maharashtra government has announced plans to establish a large-scale onion dehydration project to address recurring onion gluts and falling wholesale prices. The project will be implemented through Farmer Producer Companies (FPCs) and is expected to process approximately 1 million tonnes of surplus onions.

Responding during the state assembly session, State Marketing Minister Jaykumar Rawal said the government is considering an investment of INR 500-700 crore. The project aims to manage excess production, reduce post-harvest losses and improve price realisation for onion farmers.

Production exceeds domestic demand

According to Rawal, India produces around 32 million tonnes of onions annually, while domestic consumption is approximately 15 million tonnes. Maharashtra alone contributes nearly 15 million tonnes, highlighting the state’s dominant share in national onion production and the scale of seasonal surpluses.

Procurement remains below target

The minister reviewed the ongoing summer onion procurement programme, stating that the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) and the National Cooperative Consumers’ Federation of India Ltd (NCCF) have procured only 14,000 tonnes so far.

To accelerate procurement, the Maharashtra government has directed both agencies to procure onions through auctions at Agricultural Produce Market Committees (APMCs) and has waived market fees across the state.

The Centre launched the procurement drive on 15 May with a target of 200,000 tonnes for buffer stock creation. The procurement price, initially fixed at INR 1,235 per quintal, has been revised seven times and currently stands at INR 2,125 per quintal.

Despite successive price revisions, procurement has remained slow. With only 14,000 tonnes procured in nearly 50 days, the programme has achieved just 7% of the 200,000-tonne target. The current season’s procurement target also remains below the 300,000 tonnes procured during the previous year.

Outlook

The proposed onion dehydration project is expected to strengthen Maharashtra’s processing and post-harvest infrastructure by creating an outlet for an estimated 1 million tonnes of surplus onions. Alongside continued procurement by NAFED and NCCF through direct APMC purchases and market fee waivers, the initiative is expected to improve surplus management, reduce post-harvest losses and support greater price stability for onion growers over the medium term.