Kerala has decided to step up its intervention in the onion market as retail prices climb sharply across the state. The government will procure 100 tonnes of onions through the National Cooperative Consumers’ Federation (NCCF) and make them available to consumers at Rs 35 per kg, Agriculture Minister T. Siddique said.
Onion prices in various Kerala markets have risen to Rs 58-80 per kg, prompting the state government to act against what it sees as excessive market pressures. Siddique said the government would take necessary measures to ensure adequate supplies and prevent prices from rising unchecked.
The first consignment of 30 tonnes will be ordered immediately and is expected to reach the state within two to three days. HortiCorp, under the Agriculture Department, and Supplyco of the Civil Supplies Corporation will oversee distribution, with priority likely to be given to markets witnessing the steepest increases.
Markets including Kollamkode, Kayamkulam, Chala and North Paravur have reported significant price escalation. The minister attributed the broader rise partly to higher prices at major production centres, particularly Nashik in Maharashtra and parts of Karnataka. He also pointed to wholesale stockpiling and inadequate arrivals from farmers as contributing factors.
To handle the perishable nature of onions, the government is arranging additional cold-storage capacity. Facilities controlled by the Agriculture Department, including the one at Vazhakulam, along with other storage units across Kerala, are being considered for the purpose.
Rs 500 Crore Coconut Rejuvenation Programme
Separately, the Kerala government is preparing a Rs 500 crore coconut rejuvenation project and plans to seek financial assistance from the Centre. Siddique said he had discussed the proposal with Union Agriculture Minister Shivraj Singh Chouhan and Minister of State for Agriculture Ram Nath Thakur during his recent visit to Delhi. Following consultations with the Coconut Development Board on August 17, the state Agriculture Department decided to prepare a detailed proposal for submission to the Central Government.
Kerala is also considering the establishment of a Coconut Development Park at Kuttiady in Kozhikode district. The proposed facility is envisaged as a comprehensive hub covering planting material, cultivation, crop management, marketing, value addition, packaging and exports.
The project will also focus on addressing diseases affecting coconut palms and strengthening the overall value chain. The state intends to seek Central support for developing the proposed park.