Centre Announces Additional Onion Procurement as Wholesale Markets Remained Closed

Manas Dasgupta

NEW DELHI, Aug 22: In a bid to assuage the agitating farmers who have shut down all the onion wholesale markets in protest against imposition of 40 per cent duty on export of onions, the Centre on Tuesday promised to make additional purchases to expand its buffer stock and to protect the onion-producers from panic selling.

At a media briefing, the union commerce and consumer affairs minister Piyush Goyal said the Centre has decided to procure an additional two lakh tonnes of onion to boost up its buffer stock for which three lakh tonnes were earlier purchased. He claimed as “historic” the procurement price fixed at Rs 2,410 per quintal, in comparison to 1,800 to Rs 1,900 per quintal price paid earlier.

Lambasting some opposition parties, which he claimed, were spreading a “false impression” about the government’s decision to impose 40 per cent export duty, Goyal said procurement had already. “I would urge all farmers in onion producing states not to indulge in any panic selling,” Goyal said, “The National Cooperative Consumers’ Federation (NCCF) and National Agricultural Cooperative Marketing Federation of India (NAFED) have been directed to procure onions…” he said.

The Centre on Saturday had imposed a 40 per cent export duty on onion to restrict outward shipments and boost local availability amid apprehension about the kharif output and signs of firming retail prices, a move it believed would check increase in prices of the kitchen staple in domestic markets.

Rabi onion harvested during April-June accounts for 65 per cent of India’s onion production and meets the consumer’s demand till the kharif crop is harvested in October-November.

The minister asserted that the decision to impose export duty was taken to protect the consumers’ interest, but at the same time, the Centre has also decided to purchase additional two 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.

The Consumer Affairs Secretary Rohit Kumar Singh said the government’s action should not alarm the producers as it was only aimed at managing the retail prices. “(We) promised that we will handle the tomato situation, and its retail prices are down now. (We) assure similar price containment for onions, procurement of buffer is a regular process. Nothing for farmers to worry about,” he said.

The farmers were worried about the 40 per cent duty imposed on the export would lead to onion prices drastically falling in the domestic market. The government’s assurance came after two days of protests in Nashik in Maharashtra, where onion auctions were closed indefinitely, at all APMCs (Agriculture Produce Market Committees), including at Lasalgaon – the largest wholesale onion market in India.

A furious onion traders’ association in Nashik said it would not take part in auctions of the vegetable till the union government rolled back the 40 per cent export duty. The wholesale onion markets in Maharashtra, the largest producer of the commodity in the country, have remained closed for the last two days. Along with the market based in Lasalgaon, other APMCs in the Nashik district have also boycotted the sale of onion.

Farmers say bad weather has impacted half their produce and hit out at the government for failing to act when they face catastrophic losses. “We didn’t get any assistance from the government last time. Around ₹ 20 have been spent per kilo by farmers… they demand ₹ 40 per kg rate. Not every farmer is able to sell the produce via NAFED,” some farmers said.

The NCCF, which is already selling tomatoes at subsidised rates, has started retail sale of onions at Rs 25 per kg in Delhi. The government has also identified Andhra Pradesh, Telangana, Himachal Pradesh and Assam for market intervention and availability is being enhanced in these states by releasing buffer stocks.

The decision for the indefinite closure of onion auctions in Nashik was taken on 20 August in a meeting of the Nashik District Onion Traders Association, its president Khandu Deore said. “In case onions are brought to an APMC, as the decision will take time to reach farmers, then the auction of those onions will be conducted and thereafter the process will remain closed indefinitely. This was also decided in the meeting, as per the request by various organisations of farmers,” he said.

Traders claimed the central government’s decision to impose a 40 per cent duty on the export of onions till 31 December will adversely affect the onion growers and its export. Some farmers even protested in several places in Nashik district in Maharashtra on Monday against the Union government’s decision.

The maximum price for onion crossed Rs 67 per kilo, according to the Department of Consumer Affairs. The modal price across the nation remains Rs 31 per kilo, which is higher than the modal price of Rs 27.34 a month back and Rs 24 a year ago.