Onion growers term ₹1,235 per quintal rate unviable and anti-farmer, demand ₹3,000 per quintal

Nashik: The Maharashtra State Onion Growers’ Association on Friday strongly criticised the Centre’s decision to procure onions at Rs 1,235 per quintal (Rs 12.35 per kg), calling the rate inadequate.

The procurement, to be carried out by central agencies Nafed and National Cooperative Consumers’ Federation of India (NCCF) under the Price Stabilisation Fund (PSF), is part of the Centre’s annual exercise to build buffer stocks. Farmer groups have, however, demanded a minimum procurement price of Rs 3,000 per quintal, along with a compensation of Rs 1,500 per quintal for those who sold onions at low prices in APMC markets over the past several months.

The backlash followed an announcement by Union agriculture minister Shivraj Singh Chouhan at an event in Kolhapur. Farmers’ leaders argued that the announced rate failed to even cover the cost of production.

Association founder-president Bharat Dighole said the decision was deeply disappointing for onion growers already grappling with rising input costs and weak market prices. “This is not a relief measure. It is like rubbing salt on farmers’ wounds. The rate is unjust and anti-farmer,” he said.

Dighole recalled that after a steep fall in onion prices in Aug 2023, Fadnavis, the then deputy CM, had indicated that procurement would be done at Rs 2,410 per quintal. “Now, govt has fixed a rate that is less than half of that, despite a sharp increase in production costs. This is completely contradictory,” he said.

Farmers estimate that the average cost of production was around Rs 1,800 per quintal, making the current procurement price unviable.

While around 3 lakh tonnes were procured last year, the target for the current year has been set at 2 lakh tonnes, to be equally shared between Nafed and NCCF. The procurement prices in recent years have varied significantly. In 2025, onions were bought in the range of Rs 1,500-Rs 1,634 per quintal, while in 2024, the average procurement price was about Rs 2,800 per quintal.

At Lasalgaon APMC, the country’s largest onion market, the average wholesale price stood at Rs 1,150 per quintal on Friday, with prices ranging between Rs 500 and Rs 1,600 per quintal. A total of 11,962 quintals were traded during the day.