Maharashtra: Eknath Shinde urges Centre to restore procurement of onion under PSF by NAFED

Chief Minister Eknath Shinde on Thursday sought the intervention of Union minister of consumer affairs and food and public distribution Piyush Goyal to continue procurement of onion by NAFED under price stabilisation fund (PSF) to help the farmers facing financial difficulties due to fall in prices.

He has written to Goyal, saying, “Your ministry has already been requested to restore the procurement of onion under PSF by NAFED with an additional target of two lakh metric tonne (MT). NAFED has already procured 2.38 lakh MT at daily market rate under PSF from April to July in the current year. The increased quota would be a great step to ensure remunerative prices for onion farmers.”

Shinde said onion is an important cash crop for farmers in Maharashtra and the state contributes around 35-40% of total production in the country. In 2021-22, due to a favourable monsoon, there has been bumper production, which has led to constant decline in market prices, resulting in distress and unrest among the onion farmers.

In 2021-22, production of onion was 136 lakh MT, which was 20 lakh MT higher compared to last year’s production of 110.98 lakh MT and has caused a glut-like situation, Shinde has said.

Further, the onion export to neighbouring countries (especially Sri Lanka) has been hampered due to a variety of reasons. “As a result of the ever-changing conditions in international markets, farmers do not get the opportunity of better prices through exports. The Centre has declined the state’s request of increasing benefits from 2% to 10% under Remission of Duties and Taxes on Export Products (RoDTEP),” Shinde has said while seeking relief.