Union Home and Cooperation Minister Amit Shah has assured the Maharashtra government of swift policy interventions on sugar pricing and onion procurement, following a high-level meeting in New Delhi on Wednesday, 27 May. Chief Minister Devendra Fadnavis, who led the state delegation, said concrete decisions on the Minimum Selling Price (MSP) of sugar, ethanol quota expansion, cooperative loan restructuring, and direct onion procurement from farmers are expected shortly.

Sugar MSP and Ethanol Quota

CM Fadnavis said Shah acknowledged the urgent need for an upward revision in sugar's MSP to sustain the cooperative ecosystem. 'Union Minister Amit Shah acknowledged the necessity of a price hike. The Centre has requested a formal regulatory price proposal from the state government, which has already been drafted and will be submitted immediately,' Fadnavis told reporters after the meeting.

The Centre has also agreed to significantly increase Maharashtra's ethanol procurement quota, with a formal policy decision expected within the next two months, according to the Chief Minister.

Restructuring Cooperative Loans and Interest Subvention

The Central government committed to jointly formulating a mechanism for restructuring legacy loans of distressed sugar factories. Additionally, the Centre approved the immediate release of pending interest subvention funds to ease the liquidity crunch faced by cooperative sugar mills, Fadnavis said.

Direct Onion Procurement and Export Surcharge

Addressing chronic volatility in onion markets, CM Fadnavis announced structural reforms in procurement operations managed by central agencies NAFED and the National Cooperative Consumers' Federation (NCCF). 'The Centre accepted Maharashtra's demand that NAFED and NCCF must procure onions directly from farmers instead of purchasing through local traders or middlemen in wholesale markets,' he said.

The state has requested the Centre to raise its onion procurement target from the current 2 lakh tonnes to 10 lakh tonnes, with a positive decision described as expected. The procurement price was recently raised to ₹15.80 per kg, and discussions on further increases are ongoing.

To protect domestic cultivation and curb local shortages, the Centre accepted the state's proposal to levy a heavy export surcharge on onion seeds, which are currently being exported in large quantities. Fadnavis clarified that while restrictions apply to onion seed exports, there is no ban on the export of commercial onions.

Digitised Grading to Curb Arbitrary Rejections

Responding to repeated farmer complaints that procurement agencies arbitrarily reject produce as 'substandard' during manual grading, CM Fadnavis announced that grading would be digitised and conducted through automated machinery to ensure transparency and fair pricing.

Mango Farmers and Crop Insurance Reforms

The Maharashtra delegation also submitted a comprehensive memorandum to Union Agriculture Minister Shivraj Singh Chouhan on behalf of Alphonso (Hapus) and other mango cultivators. Fadnavis pointed out that stringent conditions imposed by crop insurance companies had deprived mango growers of legitimate compensation during climate-related disruptions. In response, Chouhan assured the delegation that a dedicated meeting with insurance companies would be convened immediately to resolve grievances and simplify norms. All eyes are now on the Centre's formal policy announcements, which are expected to determine whether these assurances translate into relief on the ground.