Govt to buy additional 2 LT onion from farmers at Rs 2,410 per quintal: Goyal

Consumers Affairs and Food and Public Distribution Minister Piyush Goyal has said that the Government is taking every step to protect the interest of onion-producing farmers. He said efforts have also been made to reduce the rising prices of onion to protect the customers.

Briefing media in New Delhi, Goyal said three lakh metric tonnes of onion have been procured so far and the process for procurement of additional two lakh metric tonnes has already started. He said an additional two lakh metric tonnes will be procured further, if the requirement will arise in the coming days. The procurement of onion is being made at a price of Rs 2,410 per quintal. The Minister urged the farmers to sell their produce at this price.

He said onions are being made available to retail consumers at a subsidised rate of Rs 25 per kilo through retail outlets and mobile vans of NCCF. He also said interventions made by the government helped in the reduction of tomato prices in the country. Goyal alleged that some "political opponents" are creating a "wrong picture" about the export duty slapped on onion and urged farmers not to worry as the Centre has restarted procurement at Rs 2,410 per quintal for its buffer stock.

The minister asserted that the decision to impose a 40 per cent export duty on onion has been taken to protect the consumers' interest, but at the same time the Centre has also decided to purchase additional 2 lakh tonnes of onion from farmers to avoid any panic selling. He also said the government will increase the size of the buffer stock and procure more from farmers if the need arises.

On August 19, the central government imposed a 40 per cent export duty on onion to restrict outward shipments and boost the local availability amid apprehension about the kharif output and signs of firming of retail prices. The decision on export duty led to protests by farmers and traders in various parts of Maharasthra, especially in Nashik district. The National Cooperative Consumers' Federation of India (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED) have recommenced the procurement operations in Maharasthra and Madhya Pradesh from Wednesday.

"Both consumers and farmers are important for us. ...The government has been taking decisions in the interest of both farmers and consumers," he said. The minister said the Centre is constantly in touch with Maharasthra chief minister and two deputy chief ministers on this issue. Maharashta agriculture minister Dhananjay Munde, who was also present at the media briefing, said, "Despite imposition of export duty, the farmers will not be affected. They will get a better price for their produce and at the same time consumers will also get onion at a reasonable rate." On export shipments stuck at ports, the Directorate General of Foreign Trade (DGFT) will take a call on those shipments whose bills have been generated prior to the imposition of the export duty.

In order to protect interest of consumers from rising prices, Goyal said the government has started releasing the buffer onion through NCCF and NAFED in the retail markets of Delhi-NCR at a subsidised rate of Rs 25 per kilogramme from Tuesday. He also said sowing of kharif onion is underway and if the total coverage remains same at last year's level, the production is expected to be better, he added.

Between April 1 and August 4 this fiscal, 9.75 lakh tonnes of onions have been exported from the country. The top three importing countries in value terms are Bangladesh, Malaysia and the UAE.

Meanwhile, in a tweet, Maharashtra Deputy Chief Minister Devendra Fadanvis said that special purchase centres are going to be set up at Nashik and Ahmednagar for the benefit of onion cultivators of Maharashtra. Fadanvis informed that onions will be purchased at Rs 2,410 per quintal. He added that this will be huge relief for the onion growers of our state. Maharashtra Agriculture Minister Dhananjay Munde met Goyal in New Delhi and discussed the issues regarding onion prices.