Govt procuring onions at Rs 2,410/quintal, to ensure welfare of farmers: Piyush Goyal

Govt procuring onions at Rs 2,410/quintal, to ensure welfare of farmers: Piyush Goyal

On August 22, Minister of Consumer Affairs and Food, Piyush Goyal, announced that the government will be purchasing onions from farmers at a rate of Rs 2,410 per quintal. This move is aimed at ensuring that farmers can achieve good profits and to maintain the well-being of both farmers and consumers.

Goyal emphasized that farmers should not be concerned and advised against engaging in panic selling. He mentioned that he has been engaged in ongoing discussions with individuals including Shinde, Fadnavis, Ajit Pawar, and the Maharashtra agriculture minister, as well as other state ministers.

To stabilize onion prices and ensure affordability for consumers, the government has committed to providing onions at a price of Rs 25 per kilogram. Goyal further explained that efforts will be made to make subsidized onions available in regions where prices tend to increase.

This approach by the government aims to strike a balance between supporting the interests of farmers and ensuring that consumers have access to essential commodities at reasonable prices.

Piyush Goyal highlighted that in 2022, onion growers faced challenges due to low prices for their produce. To address this issue, the government increased its buffer stock of onions from 2 lakh metric tonnes to 3 lakh metric tonnes. This step was taken to ensure that farmers could obtain remunerative prices for their crops.

The recent trend has shown a rise in onion prices, with the cost increasing from Rs 30 per kilogram to Rs 40 per kilogram. Experts predict that this upward trajectory could lead to even higher prices, potentially reaching Rs 60-70 per kilogram in the retail market by early September due to a likely shortage in supplies.

Goyal further emphasized that the government’s interventions in commodities like tomatoes have proven beneficial for both consumers and farmers. By stabilizing prices, the government aims to create a win-win situation where consumers have access to essential items at reasonable prices while farmers receive fair compensation for their produce. This approach aims to strike a balance between the interests of all stakeholders involved.

In response to the anticipated price increase and concerns of onion prices following a trajectory similar to that of tomatoes, the government took action. On August 19, the government implemented a 40 percent duty on onion exports, effective immediately and lasting until December 31. The purpose of this move was to enhance the availability of onions within the domestic market.

However, just two days later, on August 21, the Agriculture Produce Market Committee (APMC) of Lasalgaon in Nashik, which is the largest onion market in Asia, decided to indefinitely halt the trading of onions. This decision was made as a form of protest against the central government’s decision to impose a 40 percent export duty on onions. The APMC expressed that this policy was viewed as being detrimental to the interests of farmers and labeled it as ‘anti-farmer’.

This situation highlights the complexities and challenges associated with managing the balance between domestic supply and demand, as well as the impact of government policies on the agriculture sector. The government’s efforts to stabilize prices and protect the interests of both farmers and consumers can sometimes result in differing perspectives and responses from various stakeholders within the industry.

On August 22, Devendra Fadnavis, the Deputy Chief Minister of Maharashtra, tweeted about a significant development related to the onion market. He conveyed that he had spoken with Amit Shah, the Union Home Minister, and Piyush Goyal, the Union Minister of Consumer Affairs and Food, while he was in Japan. He revealed that the central government has taken the decision to procure 2 lakh metric tons of onions.

To support onion growers in Maharashtra, the government plans to establish special purchase centers in Nashik and Ahmednagar. These centers will purchase onions from farmers at a rate of Rs 2,410 per quintal, which is expected to provide substantial relief to onion growers in the state.

In addition, the government has already begun the distribution of onions from its buffer stock. The focus is on distributing onions in major markets within states and union territories where retail prices are higher than the national average or have shown a significant increase since July.

This development reflects the government’s efforts to manage onion prices, stabilize the market, and support both farmers and consumers in light of the price fluctuations and potential shortages that have been observed recently.