An apparatus for peeling onion skin from onions using an onion peeler assembly (100) includes a drum (104) that receives the onions and a motor (102) which is connected to the drum (104). The motor rotates and transmits the power to the drum using a belt (106). The threading and slotting operations are carried out on an inner periphery of the drum (104) to form threads and slots (114). The slots (114) bisect the threads to form cutting edges (116) to peel off onion skins from the onions. The drum (104) includes a plate (112) that is placed diagonally with a minimum clearance between plate end and an inner periphery of the drum (104). The drum (104) and the plate (112) separate the onions from the onion skins. The apparatus includes a base frame (108) to house the onion peeler assembly.