The central government has relaxed size and quality specifications for onion procurement, expanding the acceptable size range from 45-65 mm to 35-70 mm and easing norms related to blemishes, colour variation, skin defects and minor sun damage. While farmers in Maharashtra have welcomed this decision, they assert that the move provides little relief and have demanded a minimum procurement price of Rs 3,000 per quintal.
Procurement Rate Concerns
Farmer leaders claim that the procurement rate of approximately Rs 1,580 per quintal offered by the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) and the National Cooperative Consumer's Federation of India (NCCF) is lower than prevailing market expectations and inadequate to cover cultivation costs. Maharashtra State Onion Growers Association's Nashik district president Jaydeep Bhadane stated, "Norms have been relaxed, but farmers are still incurring losses. The real question is when onion prices will increase."
Implementation and Transparency Issues
Under the earlier grading system, a farmer bringing 30 quintals of onions for procurement often saw only about 25 quintals accepted, with the remaining produce sold at lower market rates. Bhadane noted, "The benefit of relaxed norms will depend on how effectively they are implemented on the ground." The association has demanded greater transparency in the procurement process, urging NAFED and NCCF to publish daily lists of farmers from whom onions are procured. They also recommend that procurement be conducted through Agricultural Produce Market Committees (APMCs) to curb irregularities and ensure competitive pricing.
Production Costs and Financial Distress
Association president Bharat Dighole highlighted that the average cost of onion production is around Rs 1,800 per quintal, and farmers are being forced to sell below cost. "When farmers are compelled to sell onions below production cost, they are pushed into financial distress. The rates announced by central procurement agencies are like rubbing salt into farmers' wounds," Dighole claimed. The farmers' body also demands a subsidy of Rs 1,500 per quintal for growers who have sold onions at low prices over the past four to five months, asserting that lakhs of cultivators have suffered significant losses due to depressed market rates.
Government Measures and Farmer Reactions
The Maharashtra government has waived APMC fees on onion procurement transactions undertaken by NAFED and NCCF to reduce transaction costs and accelerate procurement. However, farmer leaders argue that the benefit of the fee waiver will largely accrue to procurement agencies unless procurement prices are raised. The association warns that merely relaxing procurement norms will not resolve the crisis facing onion growers and calls for remunerative prices, transparent procurement, APMC-based purchases, and compensation for past losses. The Lasalgaon APMC in Nashik, one of the largest wholesale onion markets in the country, remains a focal point for these demands.
