**Executive Summary**
This document outlines the schemes and policies implemented by the Indian government to support onion farmers, including the Price Stabilisation Fund (PSF) scheme introduced in 2014-15 and the Market Intervention Scheme (MIS). It details the implementation of the Pradhan Mantri Fasal Bima Yojana (PMFBY) to provide financial support to farmers in the event of crop loss. The information was given on February 13, 2026 by Minister of State for Agriculture and Farmers Welfare, Shri Ramnath Thakur.
**Key Points / Main Content**
* **Budgetary Allocation:**
* The budget allocation for the Department of Agriculture & Farmers Welfare (DA&FW) has increased from Rs. 21,933.50 crore BE in 2013-14 to Rs. 1,27,290.16 crore BE in 2025-26.
* **Price Stabilisation Fund (PSF) Scheme:**
* The PSF scheme, introduced in 2014-15, aims to protect consumers from price volatility in agri-horticultural commodities.
* The government maintains a buffer stock of major pulses and onions for market intervention.
* NAFED and NCCF procure onions at market-driven, farmer-friendly prices.
* Buffer stocks are released through retail outlets, state governments, and e-commerce platforms to moderate prices.
* **Market Intervention Scheme (MIS):**
* Implemented to provide remunerative prices for farmers of perishable agricultural and horticultural commodities not covered under the Price Support Scheme (PSS).
* Aims to protect growers from distress sales during peak arrival periods when prices fall below economic levels.
* Requires at least a 10% decrease in market prices over the previous year.
* Implemented at the request of State/UT governments, which must bear 50% (25% for North-Eastern States) of any losses incurred.
* The Price Differential Payment (PDP) component of MIS allows direct payment of the price difference between the Market Intervention Price (MIP) and the selling price to farmers.
* States/UTs can choose between physical procurement or differential payment.
* **Storage and Transportation Cost Reimbursement:**
* The government reimburses storage and transportation costs of TOP crops (Tomato, Onion, and Potato) to central nodal agencies and state-designated agencies.
* **Pradhan Mantri Fasal Bima Yojana (PMFBY):**
* Provides risk insurance against crop damage due to natural calamities.
* Covers food crops (cereals, millets, pulses), oilseeds, and annual commercial horticultural crops.
* Onion crops can be notified by concerned State Governments.
* Andhra Pradesh, Chhattisgarh, Karnataka, Maharashtra, Odisha, Rajasthan, and Tamil Nadu have notified onion crops under PMFBY.
* As of 31.12.2025, a total of 27,21,482 farmer applications had been enrolled, with a central government share in premium subsidy of 339.53 crore and claims paid totaling 701.54 crore.
* **Infrastructure Development:**
* The government promotes modern onion storage, scientific curing, grading and sorting facilities, cold-chain infrastructure, and value-addition units.
**Impact Analysis**
**Onion Farmers**
* **Impact:** Enhanced price stability, reduced risk of distress sales, financial support through insurance schemes, and improved storage and transportation infrastructure.
* **Action Required:** Enroll in PMFBY and utilize government-supported storage and transportation facilities.
**Consumers**
* **Impact:** Protection from excessive price volatility in agri-horticultural commodities, particularly onions.
* **Action Required:** No direct action required.
**State/UT Governments**
* **Impact:** Responsibility for implementing MIS and notifying onion crops under PMFBY.
* **Action Required:** Request implementation of MIS, bear a portion of any losses incurred, and notify onion crops under PMFBY.
**Central Nodal Agencies & State Designated Agencies**
* **Impact:** Reimbursement for Storage and Transportation costs.
* **Action Required:** Transport TOP crops (Tomato, Onion, and Potato) from the producing state to consuming states.
Key Entities Referenced
Price Stabilisation Fund (PSF): Scheme introduced in 2014-15 to protect consumers from excessive price volatility in agri-horticultural commodities.
Market Intervention Scheme (MIS): Component under PM-AASHA, implemented for procurement of perishable agricultural and horticultural commodities not covered under Price Support Scheme (PSS).
Pradhan Mantri Fasal Bima Yojana (PMFBY): Scheme that provides risk insurance against crop damage to food crops (cereals, millets and pulses), oilseeds and annual commercial horticultural crops.
Ministry of Agriculture & Farmers Welfare: Primary governing body responsible for the Scheme/Policy.
Ministry of Agriculture & Farmers Welfare
Scheme/Policy for Welfare and Protection of
Onion Farmers
Posted On: 13 FEB 2026 6:55PM by PIB Delhi
Agriculture is a State subject. Government of India supports the States through appropriate policy
measures and budgetary allocation for schemes for multiple aspects like agriculture inputs, price support
etc. The Government has substantially enhanced the budget allocation of Department of Agriculture &
Farmers Welfare (DA&FW) from Rs. 21,933.50 crore BE during 2013-14 to Rs. 1,27,290.16 crore BE
during 2025-26.
In order to protect consumers from excessive price volatility in agri-horticultural commodities, the
Government introduced the Price Stabilisation Fund (PSF) scheme in 2014-15. Under PSF, buffer stock of
major pulses and onion have been maintained for market interventions and also to discourage hoarding
and unscrupulous speculation. Stocks from the buffer are released in calibrated manner to augment
availability in the market and stabilise prices. Under the Price Stabilisation Fund (PSF), the Government
annually creates a sizeable onion buffer. NAFED and NCCF procure onions from producing states at
market-driven and farmer-friendly prices. Buffer procurement helps in absorbing excess supply during
peak arrival season, preventing steep price crashes, ensuring farmers receive remunerative prices, and
guaranteeing assured off take when needed. The buffer is released through retail outlets, state
governments, and e-commerce platforms to moderate retail prices whenever required.
To provide remunerative price to the farmers, Governments implements Market Intervention Scheme
(MIS), a component under 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 and Transportation cost of TOP crops (Tomato, Onion and Potato) to central
nodal agencies & state designated agencies for transporting them from the producing state to consuming
states in the interest of the farmersWith a view to provide financial support to the farmers in the event of loss to crop due to non-preventable
natural calamities, Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop
Insurance (RWBCIS) has been introduced in the country from Kharif 2016 season. PMFBY provides for
comprehensive risk insurance against crop damage to food crops (cereals, millets and pulses), oilseeds and
annual commercial horticultural crops notified by the concerned State Government from pre-sowing to
post-harvest stages of the crops at very minimum premium for farmers. Onion crop can be notified by the
concerned State Government.
State Governments of Andhra Pradesh, Chhattisgarh, Karnataka, Maharashtra, Odisha, Rajasthan and
Tamil Nadu have notified the Onion crop in one or more seasons in their States during the last three years
from 2022-23 to 2024-25. Details of number of farmer applications enrolled, Central Government share in
premium subsidy and claims paid to onion growing insured farmers under PMFBY during the said period
(as on 31.12.2025) are Annexed.
The Government is promoting modern onion storage structures, scientific curing, grading and sorting
facilities, cold-chain infrastructure, and value-addition units to reduce post-harvest losses and increase
farmer incomes.
Annexure
Details of number of farmer applications enrolled, Central Government share in premium subsidy
and claims paid to onion growing insured farmers under PMFBY during the last three years from
2022-23 to 2024-25 (as on 31.12.2025) by major onion producing States
State Farmer Applications Central Share Claims Paid
Enrolled in Premium
Subsidy
(In No.)
(Rs. In Crore)
Andhra Pradesh 1,79,154 6.57 85.57
Chhattisgarh 2,592 0.32 0.31
Karnataka 94,143 41.32 91.12
Maharashtra 22,21,403 256.86 453.61
Odisha 14,903 0.45 0.17
Rajasthan 57,756 11.15 21.95
Tamil Nadu 1,51,531 22.88 48.80
Total 27,21,482 339.53 701.54This information was given by Minister of State for Agriculture and Farmers Welfare, Shri Ramnath
Thakur in a written reply in Rajya Sabha today.
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RC/PU/1624
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