Onion farmers seek Rs 10,000 crore revival package, stable export policy from Centre

Claiming years of export restrictions, price crashes and weather-related setbacks have pushed onion cultivators into a deep financial crisis, Maharashtra onion farmers have urged the Centre to announce a special Rs 10,000-crore revival package for growers.

The demand was raised by the Maharashtra State Onion Growers Farmers Association, which alleged that repeated government interventions in the onion market have severely impacted farmers' incomes.

Association founder-president Bharat Dighole said onion growers suffered massive losses due to export bans imposed in 2019, 2020 and 2023-24, along with a 40 per cent export duty and minimum export price conditions imposed at different times.

According to the association, the Centre's decision to release onion buffer stocks through NAFED and NCCF at lower rates in the domestic market further depressed prices and hurt growers.

"Policies that harm onion growers in the name of consumer welfare must stop. The Centre should immediately announce a special Rs 10,000 crore onion economic revival package," Dighole said.

The association claimed farmers have also been battered by excessive rainfall, hailstorms, floods, drought, crop diseases and the circulation of spurious seeds. It further alleged that growers who stored onions in 2025 and sold them in 2026 were forced to accept extremely low prices.

Demanding direct financial assistance, the body said compensation should be transferred straight into farmers' bank accounts to offset years of accumulated losses.

Maharashtra is India's largest onion-producing state, with cultivation spread across nearly 30 districts. Dighole estimated that around 10 to 15 lakh farming families depend on onion cultivation each year.

The association has also sought a comprehensive support framework for the sector, including subsidies for certified onion seeds, full financial assistance for storage sheds and warehouses, and a dedicated fund to enable direct sales from farmers, farmer-producer organisations (FPOs) and cooperatives to consumers.

It has further demanded special incentives for establishing onion-processing industries in key producing districts such as Nashik, Ahilyanagar, Pune, Beed, Satara, Chhatrapati Sambhajinagar, Jalgaon, Dhule and Solapur.

The growers' body wants support for farmer-owned units producing onion powder, onion flakes, dehydrated onions, onion paste and other value-added products to reduce dependence on raw onion sales.

Among its major policy demands are the creation of an Onion Export Promotion Fund, a stable long-term export policy to replace recurring export bans and duties, and a National Onion Stabilisation Fund to protect farmers whenever prices crash.

The association has also called for low-interest or interest-free loans to prevent distress sales of stored onions, financial support for cooperatives involved in procurement and storage, and the establishment of an independent National Onion Producers Corporation to safeguard growers' interests.

"If onion growers survive, the rural economy will survive; and if the rural economy survives, the country's economy will become stronger," Dighole said.

With PTI inputs