Maharashtra's Onion Growers Demand Rs 10,000 Crore Revival Package Amid Financial Crisis

Repeated export bans, steep duties, price crashes and weather shocks have pushed Maharashtra’s onion growers into a deep financial crisis, farmer groups have warned, urging the Centre to announce a special Rs 10,000 crore revival package for the sector. The demand, raised by the Maharashtra State Onion Growers Farmers Association, comes after years of policy interventions aimed at controlling retail onion prices, measures that farmers say have severely damaged their earnings and destabilised one of the country’s most politically sensitive agricultural markets. Association founder-president Bharat Dighole said onion growers suffered major losses after the Centre imposed export bans in 2019, 2020 and again during 2023-24 to curb domestic price spikes. Apart from outright bans, farmers were also hit by a 40% export duty and the imposition of minimum export prices of $850 and later $550 per tonne, which effectively reduced the competitiveness of Indian onions in global markets. News agency PTI reported that these policy moves sharply cut export demand at a time when farmers were expecting better prices, leaving many forced to sell produce at significantly lower rates in domestic mandis. The body argued that frequent government intervention in onion exports has created uncertainty for growers and traders alike, making long-term planning nearly impossible. The association also blamed the Centre’s decision to release buffer onion stocks into the domestic market through National Agricultural Cooperative Marketing Federation of India (NAFED) and National Cooperative Consumers’ Federation of India (NCCF). Farmers claimed that onions from government buffer stocks were sold at lower rates, further dragging down market prices and shrinking already thin profit margins for cultivators. The government typically uses buffer stocks to stabilise retail prices during shortages, but growers argue that such interventions often come at the cost of farmers’ incomes. Apart from policy decisions, onion growers across Maharashtra were also battered by a series of climate-related setbacks, including excessive rainfall, hailstorms, floods, droughts and unseasonal rains. The association said crop diseases and the use of spurious seeds added to farmers’ troubles, while those who stored onions during 2025 hoping for better returns in 2026 were forced to sell at extremely low prices due to weak demand and market oversupply. Maharashtra remains India’s largest onion-producing state, with cultivation spread across nearly 30 districts including Nashik, Pune, Jalgaon, Dhule, Satara and Solapur. According to the association, nearly 10 to 15 lakh farmer families are involved in onion cultivation annually across the state. Farmer groups are now seeking direct financial support from the Centre to compensate for mounting losses. The association has demanded that the proposed Rs 10,000 crore relief package be transferred directly into farmers’ bank accounts. It has also called for a stable long-term onion export policy instead of recurring bans and duties whenever retail prices rise. “Policies that harm onion growers in the name of consumer welfare must stop,” Dighole said, urging the government to create a “National Onion Stabilisation Fund” to protect farmers during sharp price collapses. The association has also sought major investment in onion infrastructure and value-added industries. Among the demands are subsidies for certified onion seeds, 100% assistance for storage sheds and warehouses, and special financial support for onion processing industries in key producing districts. Farmer groups want the government to encourage products such as onion powder, dehydrated onions, onion flakes and onion paste to reduce dependence on volatile fresh onion markets. The body has additionally proposed the creation of a dedicated onion export promotion fund and an independent “National Onion Producers Corporation” to safeguard growers’ interests. It also called for interest-free or low-interest loans to prevent distress sales and sought support for farmer-producer organisations and cooperatives involved in procurement, storage and marketing. “If onion growers survive, the rural economy will survive; and if the rural economy survives, the country’s economy will become stronger,” Dighole said.