Onion prices remained below production cost in 2025, says growers association
Throughout 2025, onion growers across the country were forced to sell their produce at prices far below the cost of production as per the data analysed by the Maharashtra State Onion Producer Farmers’ Organisation.
The statement released by organisation on Tuesday claimed that while farmers’ production cost ranged between ₹22 and ₹25 per kg, the average market prices they received throughout the year remained between ₹8 and ₹18 per kg.
Bharat Dighole, president of the Maharashtra State Onion Producer Farmers’ Organisation, said onion growers sold their produce at prices well below production costs throughout 2025, deepening financial stress and debt, as reflected in data from State market committees.
Monthly averages for red and summer onions show prices at ₹20 in January, ₹22 in February, ₹14 in March, ₹8 in April, ₹9 in May, ₹13 in June, ₹12 each in July and August, ₹9 in September, ₹10 in October, ₹12 in November, ₹14–15 during December 1-15, and around ₹18 per kg after December 15.
With prices remaining below cost for most of the year, growers say losses mounted steadily, pushing many further into debt.
Procurement objections
The situation persisted despite ample onion availability nationwide. During the year, the Centre procured three lakh tonnes of onions through NAFED and NCCF to build a buffer stock. However, farmer groups allege that procurement was not carried out directly from cultivators.
Instead, agencies involved in procurement allegedly purchased onions through intermediaries, including contractors and private institutions, and in some cases bought substandard produce through paper transactions. These practices, growers claim, resulted in financial irregularities and benefited a limited number of players.
Inquiry demanded
Dighole said that onions released from the buffer stock were distributed in domestic markets at very low prices, preventing any recovery in market rates during 2025. As a result, farmers were compelled to sell at a loss throughout the year.
Calling the buffer stock operation a policy failure, Dighole said the mechanism appeared to favour middlemen rather than farmers. “Buffer stocks are meant to support both farmers and consumers, but in 2025 they were used in a manner that choked farmers economically,” he said.
The Association has demanded a high-level judicial inquiry into the procurement and distribution of the 2025 buffer stock, an immediate financial audit of all agencies involved in purchases for NAFED and NCCF, and criminal action against officials, contractors, and intermediaries found guilty of wrongdoing.
If these demands are not met, the association has warned of statewide shutdowns of market committees, protests at NAFED and NCCF offices, and a nationwide agitation extending to Delhi.
Published on December 30, 2025
