Maharashtra Chief Minister Devendra Fadnavis stated that the government has taken a significant step aimed at alleviating the rural and agrarian crisis. He noted that Union Home and Cooperation Minister Amit Shah has assured the state government of prompt and favourable intervention to address the key concerns of sugarcane and onion farmers.
Following a meeting held in the national capital, Chief Minister Fadnavis informed journalists that the Central Government would soon take concrete policy decisions regarding an increase in the Minimum Selling Price (MSP) of sugar, an expansion of the ethanol quota, the restructuring of cooperative loans, and the direct procurement of onions from farmers.
Expressing satisfaction with the deliberations, Chief Minister Fadnavis stated that the Union Cooperation Minister fully concurred with the state’s assessment that an immediate increase in the MSP of sugar is essential to sustain the cooperative sector.
He added that Union Minister Amit Shah acknowledged the necessity of a price hike. The Centre has requested a formal regulatory price proposal from the state government; this proposal has already been drafted and will be submitted immediately. The Centre has also agreed to significantly increase the state’s ethanol procurement quota, and a formal policy decision regarding this is expected within the next two months.
Furthermore, the Central Government has committed to working jointly with the state administration to devise a mechanism for restructuring the legacy loans of distressed sugar factories. The Chief Minister mentioned that the Centre has also approved the immediate release of pending interest subsidy funds to mitigate the cash crunch.
To address the persistent volatility in onion markets, Chief Minister Fadnavis announced structural reforms in procurement operations managed by central agencies such as NAFED and the National Cooperative Consumers’ Federation.
