The average market price of onions in Maharashtra, the largest onion growing belt, ranges between… $900 and $1,150 per 100 kg during the period from March to May 2026, the government said in response to a question in Lok Sabha on Tuesday.
These prices are much lower than what farmer groups say it costs to produce onions.
According to Bharat Dhigul, president, Maharashtra Onion Growers Association, the cost of growing onions is approx $1,800- $2200 per 100 kilograms after calculating seeds, fertilizers, pesticides, labor, harvesting, packing and transportation.
According to him, onions are sold in $900- $1150 per 100 kilograms, causing huge losses to farmers. Many farmers’ associations demand to buy in $3000 per 100 kilometers or to compensate the gap.
Low prices in Maharashtra are of great importance as the state alone contributes more than 50% of the country’s total crop production. According to the Agriculture Ministry, India’s onion production is estimated at 30.74 million tonnes in 2025-26, of which 15.11 million tonnes is expected from Maharashtra.
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However, demands for ensuring minimum support price for onions have fallen on deaf ears.
In its reply to the Lok Sabha, the ministry referred to the Market Intervention Scheme (MIS), which is for perishable goods that do not have MSP. This scheme can be activated when market prices fall by at least 10% compared to the previous normal year and are below the economic cost of production. However, the purchase is only made if the state government requests it and agrees to share half of the losses incurred.
For onions, the Center said it also runs a separate Price Stabilization Fund (PSF) through which buffer stock is built to cushion sharp price fluctuations.
It purchased 287 thousand tons of onions during the period 2025-2026. For the current season 2026-27, the procurement target has been set at 200,000 tonnes, of which 37,000 tonnes have already been purchased.
The parliamentary response also sought to address concerns about export restrictions, an issue repeatedly raised by onion growers, who claim that policy uncertainty is driving down domestic prices.
The government said that no export duties, minimum export price or restrictions have been imposed on the export of onions since April 1, 2025.
Data presented to Parliament show a recovery in exports after last year’s decline. India exported 1.55 million tonnes of onions in 2025-26, up from 1.15 million tonnes in 2024-25, although shipments remain well below the 2.53 million tonnes exported in 2022-23.
