Maharashtra Onion Farmers Protest Against Falling Market Prices and Government Buffer Stock Policy
Thousands of onion farmers in Maharashtra are protesting a sharp decline in market prices, which have fallen well below production costs. Farmers blame the government's Price Stabilisation Fund (PSF) policy, specifically the release of buffer stocks by NAFED and NCCF at lower rates, for further depressing market prices. They are demanding a stable export policy and a halt to buffer stock sales that disadvantage local producers. With production exceeding demand and quality deteriorating in storage, farmers are facing significant financial distress, leading to calls for immediate government intervention and a minimum support price of ₹1,500 per quintal.
Key Points
- Onion prices in Maharashtra have dropped to ₹800–₹1,000 per quintal, while production costs are around ₹2,200–₹2,500.
- The Price Stabilisation Fund (PSF) is used to maintain a strategic buffer to regulate prices for consumers, often at the expense of farmers.
- NAFED and NCCF are the primary agencies responsible for procuring and releasing onion buffer stocks.
- India's onion exports have seen a significant decline, with countries like China and Pakistan capturing market share.
Exam Facts
- NAFED stands for National Agricultural Cooperative Marketing Federation of India Ltd.
- NCCF stands for National Cooperative Consumers' Federation of India Ltd.
- Onion exports fell from 25.25 lakh tonnes in 2022-23 to 11.47 lakh tonnes in 2024-25.
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