Maharashtra Marketing Minister Jaykumar Rawal on Thursday, 9 July told the state legislature that the government has rolled out a multi-pronged strategy to shield onion farmers from price volatility, anchored on expanding processing industries, scaling up storage infrastructure, and promoting crop diversification. The minister was responding to a discussion initiated by member Vikram Kale on falling onion prices across the state.

Key Developments in the Legislature

The debate drew participation from senior members including Pravin Darekar, Satej Patil, and Neelam Gorhe, reflecting cross-party concern over the persistent instability in onion prices. Minister Rawal acknowledged that adverse international market conditions had previously suppressed onion exports, triggering a sharp crash in domestic prices.

In response to that crisis, Chief Minister Devendra Fadnavis convened a high-level meeting with the Centre, which resulted in decisions to raise onion procurement targets, introduce export incentive measures, and hike procurement prices. Maharashtra, which contributes a dominant share of India's total onion output, has seen production rise consistently — making price management an increasingly complex policy challenge.

Processing Units and Storage Expansion

Minister Rawal outlined plans to promote onion processing industries, dehydration plants, and onion powder manufacturing units as long-term buffers against price crashes. A large number of onion storage structures have already been commissioned across the state to reduce post-harvest losses.

'Moving forward, the state government aims to establish regional onion processing centres through Farmer Producer Organisations (FPOs) at both the taluka and district levels,' the Minister said. He also confirmed that during past price collapses, the government directly credited subsidies into farmers' bank accounts across multiple phases. He assured the house that current market rates are satisfactory and that the government remains committed to ensuring stable returns for farmers.

Sugar Mills Clear 99.26% of FRP Dues

Separately, State Cooperation Minister Babasaheb Patil informed the Legislative Council during Question Hour that sugar mills across Maharashtra have cleared 99.26% of the Fair and Remunerative Price (FRP) owed to sugarcane farmers. The outstanding balance of ₹298 crore — pertaining to the 2022-23 crushing season — will be recovered from defaulting mills with interest.

The issue was raised by member Sadabhau Khot, with follow-up questions from members Prajakt Tanpure, Pravin Darekar, Gokul Gite, and Shrikant Bhartiya. Of 210 sugar mills in the state, 162 have cleared 100% of FRP dues; 43 have paid between 80% and 99%; two have paid between 60% and 80%; and three have paid less than 60% of their mandatory dues.

Legal Action Against Defaulters

Revenue Recovery Certificate (RRC) proceedings have been initiated against non-compliant mills to recover outstanding amounts along with interest. Minister Patil confirmed that strict legal action is underway against the defaulting factories.

The broader challenges facing the sugar industry were also discussed at a high-level meeting involving Chief Minister Fadnavis and Union Home and Cooperation Minister Amit Shah. At that meeting, the state government urged the Centre to link sugarcane FRP directly with the Minimum Selling Price (MSP) of sugar, and also demanded higher ethanol prices and a reduction in the price gap for grain-based ethanol.

Farmer Payments Remain the Priority

Minister Patil emphasised that despite financial stress in the sugar sector, farmers' FRP remains the state government's top priority. Of a total state FRP payout of nearly ₹40,000 crore for the season, only ₹298 crore remains pending — and the government has committed to clearing it at the earliest. This comes amid a broader push by Maharashtra to stabilise farm incomes across its two most politically sensitive agricultural sectors: onions and sugarcane.