Centre hikes onion procurement rate to Rs 1,580 per quintal

Nashik: The Centre on Monday increased the onion procurement rate by Rs345 per quintal, revising it from Rs1,235 to Rs1,580 per quintal, effective from Tuesday.

The procurement is being carried out through its two central agencies — National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) and National Cooperatives’ Consumers Federation of India (NCCF) — under the price stabilisation fund (PSF) to build buffer stock.

The revision comes after criticism from farmers and opposition leaders of the earlier rate, which was termed lower than the cost of production.

On May 15, Union agriculture minister Shivraj Singh Chouhan had announced a procurement rate of Rs 1,235 per quintal during a programme in Satara, triggering criticism and protest from farmers and opposition parties who said the rates quoted were less than the onion production cost.

The Union ministry of consumer affairs, food and public distribution issued an office memorandum on Monday revising the onion procurement rate.

Meanwhile, the average wholesale onion price at Lasalgaon APMC increased by Rs100 per quintal to Rs 1,350 per quintal on Monday due to drop in arrival of the produce.

Earlier, onion traders at Lasalgaon APMC had announced boycott of onion auction on May 25, citing that they faced problems in getting trucks for loading and unloading of onions because of the shortage of diesel. But after the assurance from the district administration of regularising fuel supply, onion traders participated in onion auction on Monday.

But the arrival of onions declined at the APMC as most farmers did not know about the resumption of onion auctions that led to marginal rise in average wholesale onion price at Lasalgaon APMC on Monday. Around 8,000 quintals of onions were auctioned at Lasalgaon APMC on Monday.

Meanwhile, the Maharashtra State Onion Growers’ Association on Monday strongly opposed the Centre’s decision to increase the onion procurement rate from the previous Rs 1,235 per quintal (Rs 12.35 per kg) to Rs 1,580 per quintal (Rs 15.80 per kg), terming the rate inadequate as farmers would not even able to recover the onion production cost.

“We are still firm on demand that the Centre should procure onions at the rate of Rs3,000 per quintal. Moreover, the govt should give grant of Rs 1,500 per quintal to those onion farmers who sold their produce at less rates at the APMCs in the last few months,” said Bharat Dighole, president, Maharashtra State Onion Growers’ Association.

“While the cost of onion production is around Rs 1,800 per quintal, farmers are fetching rates between Rs500 and Rs900 per quintal at the APMCs in the state, which is leading them to incur heavy financial losses. The rate announced by the Centre is also les than the onion production cost. Hence, the Centre should announce onion procurement rate of Rs3,000 per quintal, and it should procure 5 lakh tonnes of onions, instead of its current procurement target of 2 lakh tonnes,” said Dighole.