Maharashtra: Onion farmers unhappy with Centre’s procurement price

Union agriculture minister Shivraj Singh Chouhan on Thursday, 15 May, announced that NAFED would procure onions at Rs 12.35 per kg, during a programme in Maharashtra’s Satara district. However, onion farmers in the state are far from satisfied with the procurement price, arguing that it is too low considering cultivation, labour and transportation costs.

Farmers are demanding a subsidy of at least Rs 1,500-2,000 per quintal and a minimum support price of Rs 30 per kg. They have also sought the immediate release of pending onion subsidies and financial assistance of up to Rs 10 lakh.

Farmers across Maharashtra, especially small and marginal cultivators, are deeply distressed by the ongoing price crash. In some mandis, onion prices have reportedly fallen to as low as 50 paise to Re 1 per kg. In Nashik and several other major agricultural market committees, prices have dropped to between Rs 300 and Rs 1,000 per quintal, far below production costs.

Farmers blame the Centre’s export restrictions for depressing onion prices and fuelling losses.

Maharashtra is India’s largest onion-producing state, accounting for nearly 35.45 per cent of the country’s total production. According to market reports for May, there is a significant mismatch between supply and demand in the state. Production has reportedly risen by nearly 70 per cent, but weak domestic and overseas demand, particularly from Gulf countries, has kept prices under pressure.

In Solapur mandi, onion prices have reportedly fallen so sharply due to bumper production and weak demand that farmers are struggling to recover even their basic costs, with some allegedly being forced to burn their crop in the fields.

Chief minister Devendra Fadnavis welcomed Chouhan’s announcement of the new procurement rate, saying farmers had been facing severe distress because of collapsing onion prices, which in some places had fallen to Rs 1-2 per kg. “Farmers were being forced to throw away their produce. This decision will provide them major relief,” Fadnavis said.

The Opposition, however, questioned the government’s policies and dismissed the announcement as an “event”, demanding that farmers receive fair compensation for their produce.

Swabhimani Shetkari Sanghatana leader Raju Shetti blamed the Centre’s policies for the sharp decline in onion prices and described the government’s assistance as inadequate.

According to Shetti, the government had failed to provide meaningful relief to farmers. He demanded that onions be removed from the Essential Commodities Act and that export restrictions be lifted completely.

Despite the procurement announcement, anger among onion farmers showed little sign of easing. Farmers staged a road blockade protest on the Nagar-Kalyan highway in Ahmednagar on Thursday and threw onions onto the roads to express their anger. In Mumbai too, protesters demonstrated outside Mantralaya and hurled onions in protest, following which police detained several demonstrators.

The onion farmers had joined a protest march led by Raju Shetti along with mango and cashew farmers. The march had the support of the Congress, Shiv Sena (UBT), Sharad Pawar-led NCP and several other Opposition parties.

Police, however, did not permit the protesters to march towards the Chief Minister’s official residence, Varsha, and stopped several senior leaders and workers at Azad Maidan.