India's Maharashtra state government announced a compensation of INR 300 ($3.66) per quintal to onion farmers on Monday after prices fell dramatically by over $6.
Announcing the measure in the State Assembly, Maharashtra state chief Eknath Shinde explained that prices had declined due to a rise in production, admitting, however, that the onion “is a very important crop in the state and the steep decline in the price is a sensitive issue.”
Several farmers' unions in Maharashtra have been protesting because of the decline in the kitchen staple since last month.
On February 27, the onion farmers' union Maharashtra Rajya Kanda Utpadak Sanghatana (MRKUS) stopped the auction of onions at Lasalgaon Agriculture Produce Market in Nashik district.
Similar protests were staged in various other parts of the state. National Congress Party (NCP) lawmakers even staged a protest in the State Assembly by carrying baskets of onions and wearing onion garlands.
Last week, a farmer in Nashik lit a crop bonfire in protest against the government policies and to highlight the plight of onion growers.
Onion prices were reportedly around INR 1,000-1,100 ($12.15-13.37) per quintal at Lasalgaon, India’s largest wholesale market for onions, on February 9, halving to INR 500-550 ($6.08-6.68) per quintal by February 27.