Eknath Shinde requests that the Center resume using NAFED to buy onions under the PSF programme

by Web Desk | Published: 15 Sep 2022

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In an effort to assist the farmers experiencing financial difficulties as a result of the price decline, Chief Minister Eknath Shinde on Thursday requested the assistance of Union Minister of Consumer Affairs and Food and Public Distribution Union Piyush Goyal. He asked him to continue the procurement of onions by NAFED under the Price Stabilization Fund (PSF). "Your ministry has already been asked to reinstate the purchase of onions from NAFED under the PSF programme with an extra target of 2 lakh MT."
 
From April to July of this year, NAFED already purchased 2.38 lakh MT of onions at the daily market pricing under PSF. The CM stated in a statement that the additional quota of 2 lakh MT would be a tremendous move to guarantee that onion farmers get fair rates.
 
He claimed that Maharashtra produces about 35 to 40% of the nation's entire production of onions, which are a significant cash crop for farmers in the state. Due to a favourable monsoon in the years 2021–2022, there was a bumper crop of onions produced, which caused market prices to continuously plummet and often go below the cost of production, causing anguish and unrest among onion farmers.
 
A glut-like situation has resulted from the 136 lakh MT of onions produced in 2021–22, which is 20 lakh MT more than the 110.98 lakh MT produced the year before. Shinde added that several factors, including Sri Lanka's current financial crisis, have made it difficult for that country to import onions, have made it difficult to export onions to its neighbours. Farmers do not have the chance to export their products for higher prices because of the constantly shifting conditions of the global markets.
 
The state administration requested an increase in benefits under the Remission of Duties and Taxes on Export Products from 2% to 10%, but the Central Government rejected the request (RoDTEP). He appealed to the minister, saying, "I will be grateful if your ministry reconsiders the decision and increases the RoDTEP benefits from 2% to 10%.
 
 
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