The present study entitled “An Economic Analysis of Production of onion in Mahabubnagar district of Telangana” was conducted in year 2019-2020. The study made use of a multi stage sampling and random sampling technique to select 90 farmers among the selected villages. Data for the selected study were collected with the aid of well-structured questionnaires . Data collected were analyzed using tabulation method along wit required statistical tool. The Production of onion has increased in the area largely due to productivity increase and increase in the area under crop. Resource use structure in onion was found to be varied among the size groups. The per cost of cultivation was varied among the size groups of onion was highest on small size(Rs.63718.2/hac) and lowest on large size(Rs.61250.0/hac) and medium (Rs.62842.0/hac). The input output ratio is highest on large size farms and lowest on small size farms

Keywords : Onion, Cost and return, input output ratio.