Wholesale onion prices have fallen to 1,280 per quintal across Nashik and other parts of the country, which is much lower than the cost of production. This steep decline has caused major financial losses to farmers. In view of the growing financial crisis faced by farmers and traders due to the excess supply of onions in India, MP Rajabhau Waje has written two separate letters to Union Agriculture Minister Shivraj Singh Chouhan and Commerce Minister Piyush Goyal.
He has demanded policies that support onion exports. Waje has placed two key demands before the government. The existing RoDTEP rate (Remission of Duties and Taxes on Export Products) for onion exports should be raised to 5 per cent. Exporters should receive up to 7 per cent transport subsidy to incentivise onion exports.
Waje has placed two key demands before the government. The existing RoDTEP rate (Remission of Duties and Taxes on Export Products) for onion exports should be raised to 5 per cent. Ex-porters should receive up to 7 per cent transport subsidy to incentivise onion exports. Waje, in his letters, has highlighted the fact that due to a good monsoon this year, onion production is expected to be abundant, particularly in South India, where a significant influx of new crops into the markets will begin from August. This could lead to excess supply in domestic markets and further price crashes, he has warned.
Onion prices have started to collapse. Given the expected increase in production across the country in the next two to three weeks, it's quite possible that prices may fall so low that farmers won't even be able to afford taking their onions to the markets. That's why we've already begun following up with the Centre to take pre-emptive measures before the crisis worsens. My only aim is to ensure that farmers do not suffer under any circumstances. We have high expectations from the government, and I sincerely hope our ministers do not let us down said, MP Rajabahu Waje.
According to data from the Maharashtra State Agricultural Marketing Board, wholesale onion prices in Nashik and Solapur ranged between ₹ 1,200 and 1,400 per quintal around the end of July 2025 - just about equal to the cost of production. In India, the per-hectare cost of onion cultivation is about 55,000, making it nearly impossible for farmers to sell at a profitable rate. Experts believe that boosting exports is the only way to ease the surplus in domestic supply and stabilise market prices.