Onion: Problem of plenty in Maharashtra, Nafed comes to rescue of growers
The price of onion has dropped to Rs 400-600 a quintal in parts of Maharashtra, and at certain places it was being sold at just Rs 200 a quintal, presenting a classic case of problem of plenty. Meanwhile, National Agricultural Cooperative Marketing Federation of India Ltd ( Nafed), on the direction of Department of Consumer Affairs, Government of India, has initiated procurement of kharif onion to address the issue of falling prices of onion in Nashik belt
The price of onion has dropped to Rs 400-600 a quintal in parts of Maharashtra, and at certain places it was being sold at just Rs 200 a quintal, presenting a classic case of problem of plenty.
According to the data, the volume of onions arriving in Lasalgaon has more than doubled from 15,000 quintals per day in December to 30,000 quintals presently. The average wholesale price fell from Rs1,850 per quintal on December 26 to Rs 550 on February 23 this year.
Meanwhile, farmers' leader president of Swabhimani Shetkari Sanghatan and former MP Raju Shetti told Rural Voice that the onions
are being sold at a distress price of Rs 400-600 a quintal though the production cost worked out to Rs 1600.
Pointing out that many countries were facing onion shortage, he suggested that the government should encourage export of the commodity and pass on the benefits to farmers.
"The onion needs to be sold in the market immediately and exported out. But due to glut, the prices of onions have nosedived in the market," he said.
The government's export and import policy regarding onions is not consistent. We had two permanent markets - Pakistan and Bangladesh, but they preferred buying onions from Iran instead of us due to the inconsistent policy of the government. The third market is Sri Lanka, but everyone knows their situation and no one is taking risks to send their produce," he added.
Meanwhile, National Agricultural Cooperative Marketing Federation of India Ltd ( Nafed), on the direction of Department of Consumer Affairs, Government of India, has initiated procurement of kharif onion to address the issue of falling prices of onion in Nashik belt.
Nafed has opened limited centres in the district, it said in a press release, adding that the move of Centre will provide stability to the onion market.
Nafed has also planned procurement of Rabi onion from the month of April, 2023, for buffer stocking. The major procurement takes place in Nashik district.
"Farmers are requested to bring their good quality and dried stock to the procurement centres to avail of better rate at these centres. Payment will be made on line," the release said.
Meanwhile, Nafed has procured 424.31 MT of Red onion from 8 centres in Nashik belt on February 27, benefitting 116 farmers. The progressive procurement of last 3 days is 637.83 MT benefitting 168 farmers. More centres will be opened to accelerate procurement.
Nafed has also dispatched more than 200 MTs of Red onion purchased from farmers in Nashik belt to Delhi.
Purchases are likely to increase further with additional centres being operated with objective to stabilise the local rate of onion.
On the directions of the Department of Consumer Affairs, Government of India, Nafed has initiated procurement of late Kharif onion in Nasik belt for the benefit of farmers.
The procured stock is being dispatched to consumption centres outside Maharashtra, the release added.
Farmers in Maharashtra have been pressing for a grant of Rs 1,500 per quintal for onion, and have threatened to disrupt trading if the demand is not met.
Maharashtra is one of the biggest producers of onion accounting for almost 40 per cent of the overall onion produced in the country and the late kharif acreage in the last sowing season stood at 2.69 lakh hectares nationally.
