Onion growers in India's Nashik region are calling on the central government to release outstanding payments linked to onion purchases made under the price stabilisation fund scheme. State food and civil supplies minister Chhagan Bhujbal has urged the Centre to clear the remaining 25 per cent payment to farmers before Makar Sankranti, which falls on Jan 14.
Between June and July 2025, farmers in Nashik sold nearly 3 lakh tons of onions to central government agencies under the scheme. The purchases were carried out by the National Agricultural Cooperative Marketing Federation of India Ltd and the National Cooperatives' Consumers Federation of India to build buffer stocks aimed at stabilising domestic supply and pricing. While 75 per cent of the agreed amount has already been paid, the remaining Rs 100 crore, equivalent to around US$12 million, has been outstanding for the past five months.
In letters addressed to Union minister Pralhad Joshi, chief minister Devendra Fadnavis, and deputy chief minister Ajit Pawar, Bhujbal stated that farmers are facing financial pressure and difficulty meeting farm input costs and loan repayment obligations. He warned that delays in resolving the issue could lead to further unrest, adding that releasing the pending payment before the upcoming festival would provide relief to growers.
In response to the continued delay, farmers have staged protests across several locations in the Nashik district. Demonstrations have targeted the Centre over the non-payment of dues linked to onions supplied for the national buffer stock. Sit-in protests were also held near the NAFED office in Pimpalgaon, with growers demanding immediate disbursal of the outstanding funds.
India has been building onion buffer stocks for the past ten years under the price stabilisation fund in an effort to manage supply and limit price volatility in domestic markets. These buffer stocks are typically used during periods of scarcity, which often occur between August and September.
Summer onions, harvested during March and April, have a storage life of six to seven months. Growers often store this produce to achieve improved market returns, as there is a limited fresh supply for around five months between May and mid-October, until the arrival of the kharif onion crop. During this gap, onions released from on-farm storage supply the market until fresh harvests begin in the second half of October. Disruption to this cycle can result in supply shortages and market instability.
Source: The Times Of India
