The government of India has increased the onion procurement rate under the Price Stabilisation Fund (PSF) from Rs1,235 per quintal (US$14.42 per 100 kilograms) to Rs1,580 per quintal (US$18.45 per 100 kilograms), effective Tuesday.
Procurement is being carried out through the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) and the National Cooperatives’ Consumers Federation of India (NCCF) to build onion buffer stocks.
The revised rate follows criticism from growers and opposition leaders who argued that the previous procurement price was below production costs. On May 15, Union Agriculture Minister Shivraj Singh Chouhan announced the earlier procurement rate during a program in Satara.
Meanwhile, wholesale onion prices at Lasalgaon APMC increased by Rs100 per quintal (US$1.17 per 100 kilograms) to Rs1,350 per quintal (US$15.77 per 100 kilograms) following lower arrivals.
Earlier, onion traders at Lasalgaon APMC had announced a boycott of auctions on May 25 due to diesel shortages affecting truck loading and unloading operations. Auctions resumed after district authorities assured traders that fuel supplies would be regularised.
Arrivals remained lower than usual, with approximately 800 tons auctioned at Lasalgaon APMC on Monday.
The Maharashtra State Onion Growers’ Association said the revised procurement price remains below production costs.
“We are still firm on the demand that the Centre should procure onions at the rate of Rs 3,000 per quintal. Moreover, the govt should give a grant of Rs 1,500 per quintal to those onion farmers who sold their produce at lower rates at the APMCs in the last few months,” said Bharat Dighole, president of the association.
According to the association, onion production costs are currently around Rs1,800 per quintal (US$21.03 per 100 kilograms), while growers in Maharashtra are reportedly receiving between Rs500 and Rs900 per quintal (US$5.84 to US$10.52 per 100 kilograms) at wholesale markets.
The association also called for the government to increase onion procurement volumes from 200,000 tons to 500,000 tons.
Source: The Times Of India
