India: Federal government to grant ₹500 mln to create onion storage facilities

India’s central government has initiated many schemes to develop India’s agri sector. Now, the state government of Maharashtra has recently come up with the idea of enhancing the storage facilities in the state. The state government has initiated it so that farmers are not left at the mercy of market forces and uncertain climatic conditions. On the other hand, onion farmers in Maharashtra will get over ₹500 mln (€6 mln) in subsidies in fiscal years 2020-21, for creating onion storage facilities under Rashtriya Krishi Vikas Yojana (RKVY).

Over 6,500 farmers will get the Central subsidy for constructing open onion storage facilities, says Maharashtra government official. Of the total project cost, the Centre will provide 60 percent subsidy and the rest will be provided by the State government. Noting the short shelf-life of onions, long-term storage requires a well-ventilated structure, where crops get air and sunlight but it is protected from water, the official said.

Price fluctuations
According to an article on, both the federal and the state government are trying to stabilize onion prices. Creating storage facilities is part of the efforts. On the other hand, the largest producer of onions in the State, the Nasik region has suffered major crop losses due to heavy rains in September and October last year.

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