Maharashtra CM Eknath Shinde announces compensation as falling onion prices incur losses

Maharashtra Chief Minister Eknath Shinde. File Pic

Maharashtra chief minister Eknath Shinde on Monday announced a compensation of rupees 300 per quintal for the onion farmers as they are battling a crisis after the kitchen staple has taken a hit.

The Opposition had demanded compensation for the farmers who were in distress due to the falling onion prices. The compensation is expected to provide some relief to the farmers and help them recover from the losses they have incurred.

Announcing the relief in the state legislative assembly session during the ongoing budget session, Shinde said a compensation of Rs 300 per quintal would be dispersed to farmers growing onions in the state.

The decision was taken in light of the difficulties faced by farmers due to the fall in onion prices. He said the compensation would bring in much needed relief to the onion-producing farmers.

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The chief minister said that the increase in onion production in other states of the country, the demand for the kitchen staple is lesser than the supply. "Due to this, the prices of onions have 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," he added.

Shinde said the market price of onions depends on production, domestic demand and exports. "A committee was appointed by the state government to provide relief to the productive farmers. The committee recommended Rs 200 and Rs 300 per quintal. But the state government stands firmly with onion-producing farmers and has decided to give Rs 300 per quintal as financial help to them," he added.