Nashik farmers say Rs 15.80/kg rate does not cover input costs

3 min readPuneUpdated: Jun 7, 2026 09:01 PM IST

The Consumer Affairs Ministry has also directed both agencies to open procurement centres in talukas not yet covered. Procurement is set to begin on Monday. (File)

The Centre has relaxed procurement norms for onions under its nodal agencies, NAFED (National Agricultural Cooperative Marketing Federation of India Ltd) and NCCF (National Cooperative Consumers’ Federation of India Ltd), widening permissible size limits and easing quality criteria, but farmers in Nashik district remain sceptical, saying the real test will lie in transparent, timely implementation and a fair price.

The revised norms, announced on June 3, expand the permissible onion size range from 45-65mm to 35-70mm and ease quality parameters related to spots, discolouration, single-layered skin and sunburn damage.

The Consumer Affairs Ministry has also directed both agencies to open procurement centres in talukas not yet covered. Procurement is set to begin on Monday.

The Maharashtra government has separately waived the 0.75 per cent APMC market fee on onion procurement by NAFED and NCCF, a concession equivalent to 75 paise per Rs 100 of procurement, to reduce transaction costs and speed up buying. However, farmers say the benefit of this waiver will largely flow to the procurement agencies unless the purchase price paid to growers is raised simultaneously.

‘Rs 15.80 doesn’t even cover input costs’

The crux of farmer discontent is the procurement price. While onions at Lasalgaon APMC, India’s largest onion market, are currently fetching Rs 18-19 per kg for good quality produce, the government’s procurement rate stands at Rs 15.80 per kg.

Jaideep Bhadane, Nashik district president of the Maharashtra State Onion Growers Association, said the gap was untenable. “NADED and NCCF must procure transparently and at Rs 30 per kg. The monsoon is arriving and farmers who have stored their produce risk further damage if procurement is delayed,” he said.

Bhadane pointed out that in 2023-24, government procurement was carried out at around Rs 24 per kg. “Since then, the cost of diesel, labour, fertilisers and transportation has risen significantly. Rs 30 per kg is the minimum justified rate today,” he said.

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Jitendra Solanke, an onion grower from Satana taluka in Nashik, said the announced rate was below the cost of production itself. “Between fertilisers, labour, transport and other expenses, growing onions costs roughly Rs 18 to Rs 20 per kg. At Rs 15.80, we cannot even recover our input costs, let alone repay loans or run our households,” he said.

Solanke added that the announcement had been made in mid-May but procurement had not started on the ground. “The first week of June is already over. Farmers need cash now to buy seeds, fertiliser and prepare their fields for Kharif season. If the centre takes too long, traders will end up being the main beneficiaries, because most farmers have already sold their stock or are selling at APMC mandis,” he said.

Shubham Kurale is a journalist based in Pune and has studied journalism at the Ranade Institute. He primarily reports on transport and is interested in covering civic issues, sports, gig workers, environmental issues, and queer issues. X:@ShubhamKurale1 ... Read More

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