Centre to Grant 50 Crores to Create Onion Storage Facilities

The Central government has initiated many schemes to develop India’s Agri scenario and the state government of Maharashtra has recently come up with the idea of enhancing the storage facilities in the state. As per reports, 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 ₹50 Crore in subsidy in 2020-21 fiscal years for creating onion storage facilities under Rashtriya Krishi Vikas Yojana (RKVY), says the official.

What will be the Centre-State share?

Over 6,500 farmers will get the Central subsidy for constructing open onion storage facilities, called Kanda chawl in local parlance, 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.

As per reports, Maharashtra produces about 30 percent of the total onion output in the country. Onion is grown in Kharif (June- July), late Kharif (August- September) and rabi (November-December) seasons.

The crop produced in Kharif and late Kharif has a limited shelf life and farmers bring the crops to the market immediately after harvest. Rabi onions can be kept in good condition if stored in scientifically built storage structures.

Price fluctuations of Onion

As reported, both the Centre 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.