The central government has commenced the procurement of onions at a rate of Rs 2,410 per quintal, effective from August 22, in response to the escalating prices of the commodity. Minister of Consumer Affairs and Food, Piyush Goyal, emphasized that this step aims to benefit both farmers and consumers during a press briefing.

The onion buffer for the current year has been raised to 5 lakh metric tonnes, surpassing the initial target of 3 lakh metric tonnes. Minister Goyal explained that the government procured 3 lakh metric tonnes, leading to increased prices and significant profits for farmers. Additionally, the decision was made to acquire an additional 2 lakh metric tonnes, with flexibility for further increase as required.

Minister Goyal noted that the Free On Board (FOB) price for export stood at $320 per quintal, resulting in a realization of Rs 18-20 per kg for farmers, which is notably lower than the offered price of Rs 24.10.

Currently, onion prices hover around Rs 40 per kilogram in various regions across the country. In major onion markets such as Pimpalgaon and Lasalgoan of Maharashtra, wholesale prices reached Rs 2500 per quintal on August 10.

To counter an anticipated price rise, the government imposed a 40 percent duty on onion exports until December 31, effective immediately. However, the Lasalgaon Agriculture Produce Market Committee (APMC) ceased trading in protest against the export duty, considering it “anti-farmer.”

Minister Goyal assured that the government’s intervention in the tomato market helped stabilize prices and benefit both consumers and farmers. He reiterated the intent to replicate this success with onions.

Despite a slower Kharif sowing this year, Minister Goyal expressed confidence in healthy onion production, with estimated areas of production remaining consistent. Continuous dialogue with Maharashtra officials ensures vigilance over the situation.

Maharashtra Deputy CM Fadnavis affirmed the Centre’s purchase of 2 lakh metric tons of onions and the establishment of special purchase centers in Nashik and Ahmednagar to support onion growers. Procurement is being carried out from various districts in Maharashtra and other states.

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