He said this persistent mismatch between costs and prices was the “main reason behind farmers' losses and rising indebtedness.”
Onion Farmers Suffer Huge Losses in 2025, Say Centre’s Policy Responsible
Onion growers across the nation suffered severe financial losses in 2025. According to the Maharashtra State Onion Growers Farmers’ Association, these losses were due to ill-conceived government intervention in the market. Bharat Dighole, founder president of the Nashik-based body, said that market prices for onions remained far below the cost of production throughout the year, forcing growers into mounting debt and distress.
Dighole pointed to data compiled from market committees in Maharashtra, which showed that average prices received by farmers ranged from approximately INR 8 to INR 18 per kg during 2025, whereas the cost of production was between INR 22 and INR 25 per kg. He said this persistent mismatch between costs and prices was the “main reason behind farmers’ losses and rising indebtedness.”
The association alleged that the Centre’s buffer stock policy involving procurement of around 3 lakh tonnes through NAFED and NCCF was mismanaged. According to Dighole, instead of buying directly from growers, purchases were routed through intermediaries and private agents, resulting in “large-scale irregularities and financial misconduct.”
He also said that buffer stocks were released into the domestic market at very low prices, preventing rates from recovering and compelling farmers to sell at a loss. Dighole described the mechanism as a “broker-protection scheme” that benefited selected entities rather than producers.
The association has demanded a high-level judicial inquiry, financial probes into procurement agencies, criminal action against those culpable, and a legally guaranteed minimum support price for onions. Dighole said that direct compensation via subsidies should be provided for losses incurred in 2025, warning of statewide and nationwide protests if demands are not met.
Source: The Tribune
