Maharashtra's Food and Civil Supplies Minister, Chhagan Bhujbal, has made an urgent appeal to the central government, urging it to clear a long-pending payment of approximately Rs 100 crore owed to onion farmers in the Nashik region. The minister has requested that the dues be settled before Makar Sankranti on January 14, a major festival for the farming community.
Five-Month Delay Sparks Farmer Distress
The financial deadlock stems from transactions made between June and July 2025. During this period, farmers in Nashik sold nearly 3 lakh tonnes of onions to central government agencies. These agencies, the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) and the National Cooperatives' Consumers Federation of India (NCCF), were procuring onions under the Price Stabilisation Fund (PSF) scheme to build a buffer stock.
While 75% of the total value was paid to the farmers at the time of purchase, the remaining 25% has been outstanding for the past five months. This delay has plunged many farmers into severe financial hardship, making it difficult for them to manage essential farm expenses and repay agricultural loans.
Minister's Appeal and Rising Protests
In formal letters addressed to Union Minister Pralhad Joshi, Chief Minister Devendra Fadnavis, and Deputy Chief Minister Ajit Pawar, Minister Bhujbal highlighted the acute distress faced by the farming community. He cautioned that failure to resolve the payment issue promptly could lead to further unrest and agitation.
Bhujbal emphasized that releasing the pending amount before Makar Sankranti would provide much-needed relief and support to the farmers during the festive period. Concurrently, farmers have already begun expressing their frustration through demonstrations. Protests and sit-ins have been staged at various locations in Nashik district, including near the NAFED office in Pimpalgaon, with protestors demanding the immediate disbursal of their dues.
The Critical Role of Onion Buffer Stocks
The central government has been creating an onion buffer stock for the past decade under the Price Stabilisation Fund. This strategic reserve is designed to stabilise supply and prices in the domestic market, especially during periods of scarcity that typically occur between August and September each year.
The onion supply cycle is delicate. Summer onions, harvested in March-April, have a shelf life of about 6-7 months. Farmers often store their produce hoping for better prices later. There is a gap of roughly five months between May and mid-October when no fresh onions arrive until the new kharif crop hits the market. The stored produce from farmers' godowns bridges this gap until fresh arrivals begin in the second half of October. Any disruption in this cycle, including financial distress that prevents proper storage or forces distress sales, can quickly lead to a scarcity of onions in the market.
The current payment delay not only affects individual farmers but also risks destabilising this carefully balanced system, which is crucial for maintaining price stability of a key kitchen staple across India.
