Onion Crop Crisis Due to Unseasonal Rain Economy

03.11.2025

1. Onion Crop Crisis Due to Unseasonal Rain

Economy

Context

In 2025, unseasonal rains hit Maharashtra’s onion crop severely, causing widespread damage and sparking protests by onion farmers demanding compensation and support.

About the Crisis

Cause and Impact

• The critical damage occurred to the Rabi onion crop, sown in October-November, which is the main onion crop contributing about 60% of India’s onion production.
• Post-monsoon rains between October 19 and 27, caused by Western Disturbances and Cyclonic Circulation, damaged crops across major districts like Nashik, Ahmednagar, Pune, Jalgaon, Solapur, and Satara.
• Nashik alone saw crop damage on over 14,000 hectares affecting more than 60,000 farmers.
• Other crops like soybean, maize, and cotton also suffered losses due to the unseasonal rain.

Farmer Response

• Maharashtra’s onion producers held ongoing protests demanding compensation (muawza) for crop losses, free seeds for the next sowing season, and long-term policy support.
• Farmers pointed out that unseasonal rains not only destroyed standing crops but also damaged stored onions kept outdoors, worsening losses due to lack of adequate cold storage facilities.

Production and Economic Context

India’s Onion Production

• India ranks second globally in onion production, producing roughly 25 to 30 million tons annually.
• Maharashtra is the leading onion-producing state, contributing about 86 lakh tons in 2024, followed by Madhya Pradesh, Karnataka, Gujarat, and Rajasthan.
• Onions are a staple horticultural crop whose price fluctuations (₹5 to ₹100 per kg) heavily influence food inflation.

Cropping Seasons

• India grows three onion crops:
  1. Kharif onion: Sown June-July, harvested Oct-Dec (20% of output).
  2. Late Kharif: Sown Aug-Sept, harvested Jan-March (moderate share).
  3. Rabi onion: Sown Oct-Nov, harvested March-May, most important crop with 60% of production, has year-round supply utility.

Challenges and Policy Issues

• Price Volatility: Small supply disruptions cause onion prices to swing dramatically, impacting both consumers and farmers.
• Storage: Lack of affordable cold storage leads to post-harvest losses estimated at 30-40%.
• Market Structure: Middlemen dominate trade channels, often suppressing farmgate prices.
• Export Controls: Government-imposed export bans during domestic price surges reduce farmers’ income opportunities.
• Insurance: Coverage for onion crops under the Pradhan Mantri Fasal Bima Yojana remains inadequate, limiting farmers’ risk protection.

Conclusion

The onion crop crisis in Maharashtra due to unseasonal rains in 2025 highlights the vulnerability of India’s horticulture to climatic shocks. Addressing gaps in crop insurance, cold storage infrastructure, and market reforms are critical to stabilizing farmers’ incomes and ensuring food price stability.