Maharashtra Minister Urges NAFED To Consult State Before Releasing Onion Stocks

1. Maharashtra has produced 170 lakh metric tonnes of onion this year—55 lakh tonnes more than last year. Prices fell sharply after NAFED hinted at releasing stocks, causing losses to farmers.

2. Minister Jaykumar Rawal stressed that NAFED must consult the state before key decisions. A proposal for additional export subsidies is being sent to the Centre to boost onion exports and protect farmers.

3. Rawal warned that traders manipulating markets based on speculation would face penalties. Market committees have been instructed to monitor price-depressing practices and cancel licenses if necessary.

Maharashtra’s Minister of Marketing, Jaykumar Rawal, has strongly urged the National Agricultural Cooperative Marketing Federation of India (NAFED) to coordinate with the state government before making decisions about releasing onion stocks into the market, stating that unilateral action could destabilise prices and hurt farmers.

According to PTI, speaking to reporters after a cabinet meeting on Tuesday, Rawal disclosed that onion production in the state has hit 170 lakh metric tonnes this year—an excess of around 55 lakh tonnes compared to 2024. In this context, he criticised NAFED’s recent announcement that it would release stored onions if market prices rose above ₹30 per kg.

"This led to a sudden fall in prices as traders reacted to the announcement. Farmers faced losses, and we have therefore told NAFED that such decisions need to be taken in consultation with the state," Rawal said.

The minister also flagged, as cited by PTI, the need for timely export support, stating that a proposal seeking an export subsidy has been prepared by the marketing department and will be submitted to the Union government. “This will encourage exports and help balance the market,” he added.

Rawal didn’t stop at NAFED. He also pointed to the role of market rumours and opportunistic traders, alleging that some had taken undue advantage of the situation to artificially lower prices.

"We have asked market committees to monitor such practices and to act against those who intentionally depress prices. Licenses of errant traders may be cancelled if needed,” Rawal warned.

According to The hindu, The developments come at a time when onion growers across Maharashtra are grappling with low prices, even as surplus production could have opened doors to better earnings through exports. Rawal’s intervention signals a push for more coordinated policymaking between the state and central agencies, especially in handling sensitive commodities like onions that directly impact both farmers’ livelihoods and consumer inflation.