Maharashtra Government Will Compensate Onion Farmers With Rs 300 Per Quintal Due To Price Drop

The Maharashtra government announced a compensation of 300 rupees per quintal on Monday for onion farmers in the state who have been severely impacted by a sharp drop in prices.

Chief Minister Eknath Shinde announced the decision in the state Legislative Assembly, saying it will help onion farmers.

Prices for the kitchen staple have plunged in Maharashtra, leaving farmers with very little compensation for their harvest. Mr. Shinde stated that the price of onions has decreased due to increased production.

The price of onions was also a hot topic during the budget session. Last week, the price per kilogram of onion dropped to 2 to 4, infuriating growers, who had temporarily halted the auction at the APMC.

The country's onion production is expected to increase to 318 lakh tons in the 2022-23 crop year (July-June) from 316.98 lakh tons the previous year.

Maharashtra is the leading producer, accounting for approximately 43% of national output, followed by Madhya Pradesh (16%) and Karnataka and Gujarat (9%). It is harvested three times a year, during the Kharif, Late Kharif, and Rabi seasons.

Rabi onion harvesting is most important between March and May, accounting for nearly 72-75 percent of national production. Rabi onions have a longer shelf life and can thus be stored.

"We are firmly standing by the onion growers in the state," Shinde said last month. “NAFED (National Agricultural Cooperative Marketing Federation of India Limited) has begun onion procurement, which will cause prices to rise. NAFED, an apex organization under the Union Ministry of Agriculture, deals with agricultural marketing cooperatives in India.” NAFED has increased its onion procurement at our request, and 2.38 lakh tonnes have already been purchased from farmers.

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