The Hindu Editorial • September 03, 2026 • Read Original

Farmers need more storage facilities and better distribution networks

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The Hindu Read Original

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Analysis of editorial from The Hindu newspaper on September 03, 2026

Many layers: On onion produce, issues

Farmers need more storage facilities and better distribution networks

Economy Onion PricesAgricultural PolicyMinimum Export PricePDS NetworkPost-Harvest StorageFarmers Remunerative Price

Sentences

Sentence 1 of 12

English Original

Since the 1960s, India has developed a balancing-act habit: between keeping food prices affordably low for consumers and assuring farmers of remunerative prices, with the state’s interventions focused on managing this volatility in the short term.

Sentence Breakdown

Part 1

Since the 1960s,

Starting from the 1960s decade onwards,

Part 2

India has developed a habit:

India has formed a routine practice of trying to satisfy two opposing needs at the same time:

Part 3

between keeping food prices affordably low for consumers

making sure that grocery and vegetable prices do not become too expensive for ordinary buyers

Part 4

and assuring farmers of prices,

while also guaranteeing that farmers earn enough profit from their crop harvest,

Part 5

with the interventions focused on managing this in the short term.

with government actions primarily aimed at controlling sudden price fluctuations for a temporary period.

Context and Background

India

Since the Agricultural Prices Commission (now CACP) was formed in 1965, Indian agricultural policy has faced a dual mandate: ensuring fair returns to farmers through Minimum Support Prices (MSP) while using the Essential Commodities Act, 1955, and trade curbs to keep staple food affordable for consumers.

Sentence 2 of 12

English Original

This is also why the government banned onion exports from December 2023 to May 2024, then imposed a $550/tonne minimum export price and a 40% export duty, reduced the duty to 20% in September 2024, and finally abolished it in April 2025.

Sentence Breakdown

Part 1

This is also why the government banned onion exports from December 2023 to May 2024,

This reason explains why the government completely stopped onion sales to other countries between December 2023 and May 2024,

Part 2

then imposed a $550/tonne and a 40% ,

after which it allowed exports only above 550 dollars per tonne and levied a 40 percent export tax,

Part 3

reduced the duty to 20% in September 2024,

lowered that export tax to 20 percent in September 2024,

Part 4

and finally it in April 2025.

and eventually removed the export tax completely in April 2025.

Context and Background

Chronology of India

To curb surging domestic inflation, the Centre banned onion exports on December 8, 2023. When exports were re-opened on May 4, 2024, the government imposed a Minimum Export Price (MEP) of $550/tonne alongside a 40% export duty. In September 2024, the MEP was removed and the duty was halved to 20%, until all export duties were completely withdrawn on April 1, 2025.

Sentence 3 of 12

English Original

But erratic weather together with the lack of long-term relief has rendered the act increasingly awkward.

Sentence Breakdown

Part 1

But weather together with the lack of long-term relief

However, unpredictable climate patterns combined with the absence of permanent structural solutions

Part 2

has increasingly .

has made this policy balancing attempt much more difficult and messy to manage.

Sentence 4 of 12

English Original

From farmers’ point of view, the government often changes its mind after they have made important production-related decisions based on the expected price.

Sentence Breakdown

Part 1

From farmers’ ,

Looking at the issue from the perspective of the farmers,

Part 2

the government often

the authorities frequently reverse their policy decisions

Part 3

after have made important production-related decisions

after the farmers have already finalized their planting, sowing, and investment plans

Part 4

based on the expected price.

which they planned by anticipating fair market prices for their crop.

Sentence 5 of 12

English Original

On the other hand, during the bounteous rabi harvest, onion farmers in Maharashtra, the country’s principal supplier, had argued that the Centre’s procurement price of ₹12.35/kg would not cover the costs of cultivation.

Sentence Breakdown

Part 1

In contrast to the government’s perspective,

Part 2

during the harvest,

during the spring harvest season when onion crops were plentiful,

Part 3

onion farmers in Maharashtra, the country’s ,

onion growers in Maharashtra, which is India’s largest onion-producing state,

Part 4

had argued that the Centre’s of ₹12.35/kg

had contended that the central government’s purchase rate of 12.35 rupees per kilogram

Part 5

would not cover the costs of cultivation.

would fail to recover the money and effort they spent on growing the crops.

Context and Background

Maharashtra

Maharashtra produces over 40% of India’s total onions, with Nashik serving as the largest wholesale market hub. The rabi (winter-sown) crop constitutes roughly 65% of national onion output and has a longer storage life than kharif onions. In mid-2026, central procurement agencies NCCF and NAFED initially offered ₹12.35/kg, which farmer bodies opposed as insufficient compared to their estimated ₹18-₹20/kg production costs.

Sentence 6 of 12

English Original

The Centre subsequently raised the price to up to ₹26.45/kg, but many farmers — including some who had had to sell at ₹1/kg earlier because of low quality and lack of storage, among other factors — were unable to capture the higher value, exposing the limits of intervening after prices have already collapsed and not reaching all farmers or grades of produce.

Sentence Breakdown

Part 1

The Centre raised the price to up to ₹26.45/kg,

The central government later increased its purchase price up to 26.45 rupees per kilogram,

Part 2

but many farmers — including some who sell at ₹1/kg earlier because of low quality and lack of storage, among other factors —

but numerous growers (including those forced to sell at just 1 rupee per kilo earlier due to rotting produce and lack of storage)

Part 3

were unable to the higher value,

could not benefit from this increased price,

Part 4

exposing the limits of intervening after prices have already collapsed

which clearly reveals the shortcomings of stepping in only after market rates have already crashed

Part 5

and not reaching all farmers or .

and failing to benefit every grower or lower quality batches of the crop.

Context and Background

Distress Sales in Agricultural Markets

When wholesale market supplies surge during peak harvest, inadequate ventilated storage forces small farmers into distress sales at throwaway prices (sometimes as low as ₹1-₹2/kg) before crops rot. Government procurement often begins late and accepts only top ‘Fair Average Quality’ (FAQ) grades, leaving farmers with lower-grade produce excluded from relief.

Sentence 7 of 12

English Original

While the government has alluded to some price manipulation, the dominant issue remains that it keeps reacting instead of taking proactive measures, including improving storage options, maintaining a less erratic trade policy, moving stock more efficiently between regions, and protecting farmers against price shocks.

Sentence Breakdown

Part 1

While the government has some price manipulation,

Although the authorities have hinted that middlemen and traders are artificially inflating prices,

Part 2

the dominant issue remains

the most important and main problem continues to be

Part 3

that it keeps reacting instead of taking measures,

that the government acts only in response to crises rather than planning ahead,

Part 4

including improving storage options, maintaining a less erratic trade policy,

such as expanding modern cold storage warehouses, keeping export rules predictable,

Part 5

moving stock more efficiently between regions, and protecting farmers against .

transporting harvested crops smoothly between surplus and deficit states, and shielding growers from sudden price drops.

Sentence 8 of 12

English Original

The abnormal rainfall at the time of harvest and a 5%-7% drop in the kharif crop in Maharashtra, together with the well-known challenges associated with storing onions and maintaining large buffers, are simply among the pressures that highlighted the flaw this year.

Sentence Breakdown

Part 1

The abnormal rainfall at the time of harvest

The unseasonal and heavy rains during the crop-cutting period

Part 2

and a 5%-7% drop in the crop in Maharashtra,

along with a 5 to 7 percent reduction in monsoon onion output in Maharashtra,

Part 3

together with the well-known challenges associated with storing onions and maintaining large ,

combined with familiar difficulties in keeping onions fresh and managing large emergency reserves,

Part 4

are simply among the pressures that highlighted this year.

are just some of the difficulties that exposed the fundamental weakness in the government’s approach this year.

Context and Background

Onion Seasonality and Storage Vulnerability

India relies on three onion seasons: Kharif (harvested Oct-Dec), Late Kharif (Jan-Mar), and Rabi (Mar-May). Rabi onions store well for up to six months, bridging the supply gap until Kharif arrivals. However, unseasonal rains during harvest trap moisture, causing rot and premature sprouting that can destroy 30%-40% of government buffer stocks in traditional warehouses.

Sentence 9 of 12

English Original

Further, Tamil Nadu’s targeted subsidy, to buy 1,000 tonnes of onions to distribute 1 kg per ration card at ₹35, will impose pressures on the Centre to maintain a steady supply.

Sentence Breakdown

Part 1

Further,

In addition to these factors,

Part 2

Tamil Nadu’s ,

the Tamil Nadu state government’s specific financial assistance scheme,

Part 3

to buy 1,000 tonnes of onions to distribute 1 kg per at ₹35,

aimed at purchasing 1,000 tonnes of onions and providing 1 kilogram per family ration card at 35 rupees,

Part 4

will impose pressures on

will create heavy supply demands on the central government

Part 5

to maintain a steady supply.

to continuously deliver adequate stock without interruptions.

Context and Background

Tamil Nadu

In September 2026, Tamil Nadu initiated an urban market intervention to distribute onions at ₹35/kg across fair price shops and cooperative outlets (capped at 1 kg per ration card) to cushion consumers against retail prices spiking to ₹56-₹60/kg. The state procured its initial 1,000-tonne allocation from central buffer agencies NAFED and NCCF.

Sentence 10 of 12

English Original

The move is commendably designed to discourage hoarding while allowing private retail prices to cool down.

Sentence Breakdown

Part 1

The move is designed to discourage

This government decision is praiseworthily planned to stop traders from illegally storing and withholding stocks,

Part 2

while allowing private retail prices to .

while helping open-market shop prices to decline to normal levels.

Sentence 11 of 12

English Original

However, the State must also guard against the pitfalls of distributing onions through a dry-grain PDS network — its economic case could collapse if post-harvest losses, to which onion is more susceptible than, say, wheat or rice, exceed 10%-15% — and if the need arises to persist with the subsidy.

Sentence Breakdown

Part 1

However, must also the of distributing onions through a dry-grain network —

However, the state government must also protect itself from the hidden risks of selling onions through ration shops designed only for dry foodgrains (such as rice and wheat),

Part 2

its economic case could collapse

the financial logic and cost-effectiveness of the subsidy scheme could fail completely

Part 3

if post-harvest losses, to which onion is more than, say, wheat or rice, exceed 10%-15% —

if spoilage and rotting after harvest (which affects onions far more easily than wheat or rice) cross 10 to 15 percent,

Part 4

and if the need arises to with the subsidy.

and if the government is forced to keep continuing the subsidy for a longer period.

Context and Background

Public Distribution System (PDS) Infrastructure

India’s Public Distribution System (PDS) operates through over 5.4 lakh fair price shops designed primarily to handle dry grains like wheat and rice. Because these ration shops lack climate control, moisture regulation, and cold storage, distributing perishable vegetables like onions leads to severe transit spoilage and weight loss exceeding 10%-15%, heavily escalating the state’s fiscal burden.

Sentence 12 of 12

English Original

Finally, if other States also adopt similar measures, the Central buffer could be quickly exhausted, more so given this year’s high storage losses of around 30%.

Sentence Breakdown

Part 1

Finally,

Lastly, as a concluding point,

Part 2

if other States also adopt similar measures,

if more state governments start implementing identical subsidized sales programs,

Part 3

the could be quickly ,

the central government’s emergency stockpile could be completely used up very fast,

Part 4

given this year’s high storage losses of around 30%.

especially considering that nearly 30 percent of the stored onions have already rotted and spoiled this year.

Context and Background

Central Price Stabilisation Fund Buffer

The Central Government maintains an onion buffer under the Price Stabilisation Fund (PSF), targeted at 3 to 5 lakh tonnes procured through NAFED and NCCF. In 2026, unseasonal weather elevated storage spoilage to approximately 30%, meaning simultaneous requisitioning by several states could rapidly drain the central reserve before the new crop arrives.

Sentence 1 of 12

Sentences Breakdown

Editorial Summary

5-Point Summary

1 India has long struggled to balance keeping food prices low for consumers with providing profitable prices to onion farmers.
2 Frequent and ad-hoc trade policy interventions, such as export bans and minimum export prices, create uncertainty for agricultural producers.
3 Late government interventions and insufficient procurement mechanisms fail to protect farmers whose crops have already spoiled or sold at distressed rates.
4 Structural bottlenecks, including poor cold storage infrastructure, climate-induced crop damages, and high post-harvest losses, remain unaddressed.
5 State interventions like distributing onions via ration shops require modern cold chain logistics and steady central buffers to avoid systemic market failure.

Tone of the Editorial

Critical

Why this tone?

The editorial criticizes the government’s tendency to rely on short-term reactive interventions rather than addressing structural agricultural issues. Phrases like “increasingly awkward”, “keeps reacting instead of taking proactive measures”, and “pitfalls” highlight a critical appraisal of ad-hoc trade policies and inadequate storage infrastructure.

Sentence 1 of 12

Sentence Breakdown

Part 1

Since the 1960s,

Starting from the 1960s decade onwards,

Part 2

India has developed a balancing-act habit:

India has formed a routine practice of trying to satisfy two opposing needs at the same time:

Part 3

between keeping food prices affordably low for consumers

making sure that grocery and vegetable prices do not become too expensive for ordinary buyers

Part 4

and assuring farmers of remunerative prices,

while also guaranteeing that farmers earn enough profit from their crop harvest,

Part 5

with the state’s interventions focused on managing this volatility in the short term.

with government actions primarily aimed at controlling sudden price fluctuations for a temporary period.

Sentence 2 of 12

Sentence Breakdown

Part 1

This is also why the government banned onion exports from December 2023 to May 2024,

This reason explains why the government completely stopped onion sales to other countries between December 2023 and May 2024,

Part 2

then imposed a $550/tonne minimum export price and a 40% export duty,

after which it allowed exports only above 550 dollars per tonne and levied a 40 percent export tax,

Part 3

reduced the duty to 20% in September 2024,

lowered that export tax to 20 percent in September 2024,

Part 4

and finally abolished it in April 2025.

and eventually removed the export tax completely in April 2025.

Sentence 3 of 12

But erratic weather together with the lack of long-term relief has rendered the act increasingly awkward.

Sentence Breakdown

Part 1

But erratic weather together with the lack of long-term relief

However, unpredictable climate patterns combined with the absence of permanent structural solutions

Part 2

has rendered the act increasingly awkward.

has made this policy balancing attempt much more difficult and messy to manage.

Sentence 4 of 12

From farmers’ point of view, the government often changes its mind after they have made important production-related decisions based on the expected price.

Sentence Breakdown

Part 1

From farmers’ point of view,

Looking at the issue from the perspective of the farmers,

Part 2

the government often changes its mind

the authorities frequently reverse their policy decisions

Part 3

after they have made important production-related decisions

after the farmers have already finalized their planting, sowing, and investment plans

Part 4

based on the expected price.

which they planned by anticipating fair market prices for their crop.

Sentence 5 of 12

Sentence Breakdown

Part 1

On the other hand,

In contrast to the government’s perspective,

Part 2

during the bounteous rabi harvest,

during the spring harvest season when onion crops were plentiful,

Part 3

onion farmers in Maharashtra, the country’s principal supplier,

onion growers in Maharashtra, which is India’s largest onion-producing state,

Part 4

had argued that the Centre’s procurement price of ₹12.35/kg

had contended that the central government’s purchase rate of 12.35 rupees per kilogram

Part 5

would not cover the costs of cultivation.

would fail to recover the money and effort they spent on growing the crops.

Sentence 6 of 12

Sentence Breakdown

Part 1

The Centre subsequently raised the price to up to ₹26.45/kg,

The central government later increased its purchase price up to 26.45 rupees per kilogram,

Part 2

but many farmers — including some who had had to sell at ₹1/kg earlier because of low quality and lack of storage, among other factors —

but numerous growers (including those forced to sell at just 1 rupee per kilo earlier due to rotting produce and lack of storage)

Part 3

were unable to capture the higher value,

could not benefit from this increased price,

Part 4

exposing the limits of intervening after prices have already collapsed

which clearly reveals the shortcomings of stepping in only after market rates have already crashed

Part 5

and not reaching all farmers or grades of produce.

and failing to benefit every grower or lower quality batches of the crop.

Sentence 7 of 12

Sentence Breakdown

Part 1

While the government has alluded to some price manipulation,

Although the authorities have hinted that middlemen and traders are artificially inflating prices,

Part 2

the dominant issue remains

the most important and main problem continues to be

Part 3

that it keeps reacting instead of taking proactive measures,

that the government acts only in response to crises rather than planning ahead,

Part 4

including improving storage options, maintaining a less erratic trade policy,

such as expanding modern cold storage warehouses, keeping export rules predictable,

Part 5

moving stock more efficiently between regions, and protecting farmers against price shocks.

transporting harvested crops smoothly between surplus and deficit states, and shielding growers from sudden price drops.

Sentence 8 of 12

Sentence Breakdown

Part 1

The abnormal rainfall at the time of harvest

The unseasonal and heavy rains during the crop-cutting period

Part 2

and a 5%-7% drop in the kharif crop in Maharashtra,

along with a 5 to 7 percent reduction in monsoon onion output in Maharashtra,

Part 3

together with the well-known challenges associated with storing onions and maintaining large buffers,

combined with familiar difficulties in keeping onions fresh and managing large emergency reserves,

Part 4

are simply among the pressures that highlighted the flaw this year.

are just some of the difficulties that exposed the fundamental weakness in the government’s approach this year.

Sentence 9 of 12

Further, Tamil Nadu’s targeted subsidy, to buy 1,000 tonnes of onions to distribute 1 kg per ration card at ₹35, will impose pressures on the Centre to maintain a steady supply.

Sentence Breakdown

Part 1

Further,

In addition to these factors,

Part 2

Tamil Nadu’s targeted subsidy,

the Tamil Nadu state government’s specific financial assistance scheme,

Part 3

to buy 1,000 tonnes of onions to distribute 1 kg per ration card at ₹35,

aimed at purchasing 1,000 tonnes of onions and providing 1 kilogram per family ration card at 35 rupees,

Part 4

will impose pressures on the Centre

will create heavy supply demands on the central government

Part 5

to maintain a steady supply.

to continuously deliver adequate stock without interruptions.

Sentence 10 of 12

The move is commendably designed to discourage hoarding while allowing private retail prices to cool down.

Sentence Breakdown

Part 1

The move is commendably designed to discourage hoarding

This government decision is praiseworthily planned to stop traders from illegally storing and withholding stocks,

Part 2

while allowing private retail prices to cool down.

while helping open-market shop prices to decline to normal levels.

Sentence 11 of 12

Sentence Breakdown

Part 1

However, the State must also guard against the pitfalls of distributing onions through a dry-grain PDS network —

However, the state government must also protect itself from the hidden risks of selling onions through ration shops designed only for dry foodgrains (such as rice and wheat),

Part 2

its economic case could collapse

the financial logic and cost-effectiveness of the subsidy scheme could fail completely

Part 3

if post-harvest losses, to which onion is more susceptible than, say, wheat or rice, exceed 10%-15% —

if spoilage and rotting after harvest (which affects onions far more easily than wheat or rice) cross 10 to 15 percent,

Part 4

and if the need arises to persist with the subsidy.

and if the government is forced to keep continuing the subsidy for a longer period.

Sentence 12 of 12

Finally, if other States also adopt similar measures, the Central buffer could be quickly exhausted, more so given this year’s high storage losses of around 30%.

Sentence Breakdown

Part 1

Finally,

Lastly, as a concluding point,

Part 2

if other States also adopt similar measures,

if more state governments start implementing identical subsidized sales programs,

Part 3

the Central buffer could be quickly exhausted,

the central government’s emergency stockpile could be completely used up very fast,

Part 4

more so given this year’s high storage losses of around 30%.

especially considering that nearly 30 percent of the stored onions have already rotted and spoiled this year.

Reading Comprehension

Practice questions based on this editorial

Reading Comprehension - Onion Produce and Agricultural Trade Issues

Practice reading comprehension questions based on the editorial about India's onion trade policy, procurement challenges, and agricultural market management.

7 Questions Passing: 50%

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