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NCP minister Bhujbal seeks Rs 500/quintal subsidy for onion farmers in letter to CM
Chhagan Bhujbal demanded the imposition of a minimum support price (MSP) for onions on the lines of other crops, along with greater clarity on the import and export policy.
Chhagan Bhujbal requested the subsidy due to price crashes, noting investment costs exceed current market rates. (Source: FB)
NCP minister Chhagan Bhujbal has written to Chief Minister Devendra Fadnavis seeking a subsidy of Rs 500 per quintal for onion growers in Maharashtra.
In the letter, Bhujbal, who holds the food and civil supplies portfolio, highlighted the volatility in onion markets, which often leads to a price crash and causes severe financial distress to farmers. He said the increase in export duty has also adversely impacted onion cultivators and noted that price fluctuations have wider political implications in the state.
Nearly 60 per cent of the country’s total onion production comes from Maharashtra. In Nashik, considered the country’s onion hub, farmers are facing an acute crisis, Bhujbal wrote. While onion prices were stable at around Rs 1,000 per quintal in January, rates have since dropped sharply to Rs 500 per quintal, he stated.
“The investment expenditure for onion cultivation works out to Rs 1,500 per quintal. Since the prices have crashed, the farmers are pushed into financial debt, unable to recover the investment cost,” Bhujbal wrote, adding that unseasonal rain has compounded the crisis.
He pointed out that in 2023, the state government had provided a subsidy of Rs 350 per quintal to onion growers. “Since the present situation is worse, farmers should get a subsidy of Rs 500 per quintal,” he stressed.
Bhujbal also demanded the imposition of a minimum support price (MSP) for onions on the lines of other crops, along with greater clarity on the import and export policy.
Recommending an MSP framework, he wrote, “In addition to the onion expenditure investment of Rs 1,500 per quintal, plus Rs 750 profit factor added to make the MSP Rs 2,250 per quintal. When the price rises to Rs 3,000 to Rs 4,000 per quintal, export duty can be imposed.
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And if the rates go up beyond Rs 5,000, then restrictions on export should be considered.”
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