Onion growers in Maharashtra to get Rs 100 per quintal

In a relief to onion growers in Maharashtra after prices of the crop fell to a record low, the state government on Tuesday decided to provide grant of Rs 100 per quintal to these farmers.

The decision was taken at a meeting of State Cabinet, chaired by Chief Minister Devendra Fadnavis in Mumbai.

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"Big relief. Maharashtra cabinet decides to give grant of Rs100/quintal to onion producing farmers," Fadnavis tweeted after the cabinet meeting.

"Farmers who sold onion produce in APMCs from July 1 to August 31, eligible to avail this grant. Each farmer to get relief up to 200 quintals," he said.

Due to surplus onion yield, wholesale prices of onion have drastically come down. Farmers in Nashik recently sold onions at 5 paise per kg. This year, the estimated production of the onion is 2.30 crore metric tonnes against domestic consumption of 1.30 crore metric tonnes.

However, Nanasaheb Patil, chairman of Asia's largest onion agriculture product market committee, Lasalgaon (in Nashik district), criticised the government decision to offer Rs 100 per quintal "The net production cost of onion to the farmer was Rs 1,250 per quintal and the government was giving a minuscule amount of Rs 100 per quintal. If the government provides subsidy of Rs 1 per kg, how will farmers survive?" Patil said.

Former Maharashtra CM Prithviraj Chavan said it was failure on the part of the government in not anticipating the bumper production of onions.