MUMBAI: In view of the agrarian crisis in the state over low prices of onions, Maharashtra CM Eknath Shinde on Monday announced a compensation of Rs 300 per quintal to the farmers who cultivate the crop.
“The arrival of red onions in the kharif season is ongoing on a large scale. Due to the increase in onion production in other states of the country, the demand is less than the supply. Due to this, the prices of
onions had fallen. Since onion is a perishable crop, a minimum support price cannot be applied to it. Onion is an important cash crop in Maharashtra and its price is a very sensitive part of the relationship for onion-producing farmers,” Shinde said in the Assembly.
He said that the onion production in the country, plus factors like the domestic demand and exports from the country determine the onion prices and affect its prices in the market. “We had constituted a committee to study the onion crisis and recommend suggestions to give relief to farmers. The committee had recommended Rs 200 and Rs 300 per quintal.
But we decided to accept the recommendations of Rs 300 per quintal as a concessional subsidy to farmers when farmers are in trouble. We are with the farmers and will remain so,” Shinde added. Reacting to the announcement, senior NCP leader Chhagan Bhujbal said that the amount announced by Shinde wasn’t going to help. He said farmers were demanding at least Rs 1,000 per quintal in compensation.
“The announced Rs 300 per quintal amount is nothing against the cost of the production of onion. The labour cost of fertilizer has gone up drastically. Farmers are unable to recover their expenses. The government needs to be more liberal while helping the farmers,” Bhujbal said.