Growth Performance of Onion in India and Its Major Producing State

Abstract

Onion is one of India’s most important horticultural crops, contributing significantly to domestic consumption as well as agricultural export earnings. Despite its economic importance, the crop is characterized by sharp fluctuations in area, production, productivity and market prices, creating uncertainty for both producers and consumers. This study examines the long-term growth behaviour of onion cultivation in India and three major onion-producing states i.e., Maharashtra, Madhya Pradesh and Gujarat, over a period of 20 years, from 2004–05 to 2023–24. For a clearer understanding of changes over time, the entire study period was divided into two sub-periods: Period I (2004–05 to 2013–14) and Period II (2014–15 to 2023–24). The results reveal that growth in area, production and productivity was higher and more consistent in the Period I compared to Period II. The states like Maharashtra and Madhya Pradesh showed strong expansion in area and production during Period I. However, Period II witnessed increase in area and production in Gujarat. The price volatility, weather shocks, rising input costs and inconsistent market returns emerged as key factors discouraging farmers from expanding onion cultivation in the later period. The study highlights the need for policy interventions such as scientific storage facilities, improved market infrastructure, reliable market intelligence systems and the promotion of high-yielding varieties to stabilize production and enhance farmer income. Strengthening export competitiveness and ensuring remunerative prices will also be crucial for sustaining the long-term growth of India’s onion sector.