Executive Summary:
The Ministry of Agriculture and Farmers Welfare addresses concerns regarding onion farmer losses in Maharashtra due to price drops. The government is intervening through schemes like MIS and PSF, procuring onions to create buffer stocks and providing support via transport and storage subsidies. The aim is to ensure remunerative prices for farmers and prevent distress sales.
Key Points / Main Content:
Government Initiatives and Schemes:
Market Intervention Scheme (MIS): Used for perishable commodities not covered under the Price Support Scheme (PSS) to prevent distress sales.
Price Differential Payment (PDP): Introduced under MIS from the 2024-25 season, providing direct payment of the price difference between the Market Intervention Price (MIP) and the selling price to farmers.
Storage and Transportation Subsidies: Reimbursement for storage (up to 3 months) and transportation costs of Tomato, Onion, and Potato (TOP) crops is available to NAFED, NCCF, and state agencies from the 2024-25 season.
Price Stabilization Fund (PSF): The Department of Consumer Affairs (DoCA) procures onions from farmers through NAFED and NCCF to create buffer stock.
Onion Procurement and Buffer Stock:
Buffer Target: 3 Lakh MT of Onion during Rabi 2025, with 1.50 LMT to be procured by NAFED and NCCF.
Procurement Status: As of July 16, 2025, 1,07,365.26 MT of Rabi onions have been procured, with 1,06,228.13 MT from Maharashtra.
Procurement in Maharashtra (Past Three Years):
2022-23: 2.38 LMT (NAFED Rabi)
2023-24: 6.38 LMT (NAFED/NCCF Rabi/Kharif)
2024-25: 4.65 LMT (NAFED/NCCF Rabi)
Trade and Export:
Export Duty: The 20% export duty on onion was removed on April 1, 2025, to boost exports.
Long-Term Reforms and Support:
Minimum Support Price (MSP): Inclusion of crops under MSP depends on factors like shelf life and food security importance.
Pradhan Mantri Fasal Bima Yojana (PMFBY): Onion crop can be notified under this insurance scheme by state governments.
Infrastructure Development:
Mission for Integrated Development of Horticulture (MIDH): Provides credit-linked assistance for cold storage, reefer transport vehicles, and market infrastructure.
Assistance is available at 50% of the cost for cold storage units with a capacity of 5 to 1000 MT.
Impact Analysis:
Onion Farmers in Nashik, Pune, and Dindori Districts:
Impact: Benefit from price support, procurement, transport subsidies, and potential inclusion in crop insurance schemes.
Action Required: Engage with NAFED/NCCF and state agencies to participate in procurement schemes and utilize available subsidies. Consider PMFBY for onion crop insurance if notified by the state government.
NAFED and NCCF:
Impact: Responsible for onion procurement for buffer stock and transportation of onions from producing to consuming states.
Action Required: Procure onions according to the set targets, manage storage and transportation efficiently, and coordinate with state agencies.
State Governments (Specifically Maharashtra):
Impact: Required to bear 50% (25% for North-Eastern States) of losses incurred under MIS implementation. Can notify the onion crop under PMFBY.
Action Required: Submit requests for MIS implementation, notify onion crop under PMFBY if deemed necessary, and coordinate with central agencies for effective scheme implementation.
Department of Consumer Affairs (DoCA):
Impact: Oversees the procurement of onions for buffer stock through NAFED and NCCF under the Price Stabilization Fund (PSF).
Action Required: Monitor procurement progress, manage the buffer stock effectively, and ensure timely interventions to stabilize onion prices.
Key Entities Referenced
Maharashtra: A state in India, significant for onion production, and the focus of the policy regarding onion farmers.
NAFED: National Agricultural Cooperative Marketing Federation of India Ltd., a central agency involved in onion procurement and buffer stock management.
Pradhan Mantri Annadata Aay SanraksHan Abhiyan PMAASHA: A scheme which includes Market Intervention Scheme MIS, for procurement of agricultural and horticultural commodities.
Market Intervention Scheme MIS: A component under Pradhan Mantri Annadata Aay SanraksHan Abhiyan PMAASHA, which helps protect growers from distress sales due to bumper crops and falling prices.
Price Stabilization Fund PSF: A fund utilized by the Department of Consumer Affairs DoCA to procure onions and create buffer stocks.
NCCF: National Cooperative Consumer's Federation of India Ltd., an agency involved in onion procurement and buffer stock management along with NAFED.
Pradhan Mantri Fasal Bima Yojana PMFBY: A crop insurance scheme that can be utilized for onion crops, subject to notification by the State Government.
Mission for Integrated Development of Horticulture MIDH: A scheme providing assistance for establishing cold storage, reefer transport, and market infrastructure for horticulture crops, including onions.
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 22nd 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(cid:874)ष एवं (cid:873)कसान क(cid:227)याण मं(cid:287)ी
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(cid:874)ष एवं (cid:873)कसान क(cid:227)याण रा(cid:207)य मं(cid:287)ी (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 1st 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 non-
preventable 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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