Lok Sabha Question No. 264 (UNSTARRED), answered on 2025-07-22
Subject: Support to Onion Farmers in Maharashtra
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Dr. Amol Ramsing Kolhe, Shri Mohite Patil Dhairyasheel Rajsinh, Smt. Supriya Sule, Shri Sanjay Dina Patil, Prof. Varsha Eknath Gaikwad, Shri Bhaskar Murlidhar Bhagare, Shri Nilesh Dnyandev Lanke, Shri Bajrang Manohar Sonwane

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA

## UNSTARRED QUESTION NO-264

TO BE ANSWERED ON 22 nd  JULY, 2025

## SUPPORT TO ONION FARMERS IN MAHARASHTRA

264. SHRI BAJRANG MANOHAR SONWANE: PROF. VARSHA EKNATH GAIKWAD: SMT. SUPRIYA SULE: SHRI MOHITE PATIL DHAIRYASHEEL RAJSINH: DR. AMOL RAMSING KOLHE: SHRI SANJAY DINA PATIL: SHRI NILESH DNYANDEV LANKE: SHRI BHASKAR MURLIDHAR BHAGARE:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ͪष एवं ͩकसान कãयाण मंğी be pleased to state:

- (a) whether the Government is aware that the farmers from Nashik, Pune and Dindori districts, which are largest onion-producing regions in Maharashtra are currently facing severe losses due to a drastic fall in onion prices and many of them have reduced their cultivation area from one  and-a-half  acres  to  merely  half  an  acre  due  to  un-remunerative  prices  and  financial distress;
- (b) whether the current market price of onions is significantly lower than the combined cultivation and transport cost and if so, the steps being taken to address this gap;
- (c) whether the Government has any plans to procure onions at a remunerative price through NAFED or other central agencies to prevent distress sales by farmers in Nashik, Pune and Dindori districts;
- (d) the quantity of onions procured during the past three years under any price stabilization scheme, along with details of procurement in Maharashtra;
- (e) the details of any price support, transport subsidy, or export assistance provided to onion farmers of Maharashtra during the last three years;
- (f)  whether  the  Government  is  considering  long-term  reforms  in  onion  marketing,  including MSP-like mechanisms or crop insurance for price fluctuation, if so, the details thereof; and
- (g) whether the Government is planning to increase cold storage and warehousing capacity in major onion-producing areas like Nashik to help farmers hold their stock until prices improve?

## ANSWER

THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE कृ ͪष एवं ͩकसान कãयाण राÏय मंğी (SHRI RAMNATH THAKUR)

- (a) to (e): Production of Onion in the country is seasonal in nature and its price fluctuates as per prevailing demand and supply. As per the Second Advance Estimates for 2024-25, area estimates of onion in the state of Maharashtra  is 9.78 Lakh Ha compared to 6.67 Lakh Ha in 2023-24,  an  increase  of  46%.  The  All-India  Wholesale  Price  Index  (WPI)  for  onion  was reported as 279.2 for June, 2024 and 185.7 for June, 2025 registering a rate of inflation of 33.49%.

The Government takes appropriate policy measures to ensure remunerative prices to the onion  farmers.  Government  implements Market  Intervention  Scheme  (MIS),  a  component under Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA), for procurement of agricultural and horticultural commodities, which are perishable in nature and are not covered under the Price Support Scheme (PSS). The objective of intervention is to protect 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 the cost of production. The condition is that there should be at least a 10 percent decrease in the ruling market prices over the  previous normal year. The scheme is implemented at the request of a State/UT government, which is ready to bear 50 percent of the loss (25 percent in case of North-Eastern States), if any, incurred on its implementation.

Government has introduced a new component of Price Differential Payment (PDP) under Market  intervention  scheme  (MIS)  from  2024-25  season  for  direct  payment  of  the  price difference between the Market Intervention Price (MIP) and the selling price to the farmers of perishable crops. States/UTs have an option to choose either to do physical procurement of the crop or to make the differential payment between the MIP & Sale Price to the farmers.

Further,  from  2024-25  season,  Government  added  another  component  under  Market intervention scheme for reimbursing the Storage (upto 3 months) and Transportation cost of TOP  crops  (Tomato,  Onion  and  Potato)  to  National  Agricultural  Cooperative  Marketing Federation of India Ltd. (NAFED), National Cooperative Consumer's Federation of India Ltd. (NCCF) & State designated agencies for transporting from the producing state to consuming states in the interest of the farmers.

Department  of  Consumer Affairs  (DoCA) under the scheme  of Price Stabilization Fund (PSF) is procuring onion from the farmers to create buffer stock through NAFED and NCCF. The Government has decided a buffer target of 3 Lakh MT Onion during Rabi 2025 with a target  of  1.50  LMT  to  be  procured  by  NAFED  and  NCCF.  As  of  July  16,  2025,  a  total  of 1,07,365.26  MT  of  Rabi  onions  have  been  procured,  of  which  1,06,228.13  MT  has  been procured from Maharashtra alone. The quantity of onions procured under price stabilization scheme in the state of Maharashtra during the past three years i.e. 2022-23, 2023-24 and 2024-25 are 2.38 LMT (NAFED Rabi), 6.38 LMT (NAFED/NCCF Rabi+Kharif) and 4.65 LMT (NAFED/NCCF Rabi) respectively.

Government has removed the 20% export duty on onion effective from 1 st  April 2025 to boost exports  thereby farmers getting remunerative prices.

(f):  The inclusion of crops under Minimum Support Price (MSP) framework is dependent on several factors which  include relatively large shelf life,  widely  grown,  item  of  mass consumption, essential for food security, among others. Pradhan Mantri Fasal Bima Yojana (PMFBY)  envisages  comprehensive  risk  insurance  against  crop  damage  due  to  nonpreventable natural calamities. Onion crop can be notified under the scheme by the concerned State Government.

(g): Under Mission for Integrated Development of Horticulture (MIDH), credit linked assistance is provided for establishment of Cold Storage and Reefer transport vehicles for perishable horticulture  crops  including  onion.  Assistance  is  also  extended  for  setting  up  of  market infrastructures, setting up static/mobile vending cart/ platform with cool chamber, for setting up functional infrastructures for collection, sorting /grading, packing etc., for preventing the losses  and  facilitating  better  marketing  of  the  horticulture  produce.  Assistance  is  also envisaged at the rate of 50% of the cost for a unit of the size from 5 to 1000 MT capacity on pro rata basis.

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