Govt has no control over veggie prices: Sharad Pawar

Beleaguered by rising prices, Union agriculture minister Sharad Pawar on Saturday termed sky-high onion prices a seasonal phenomenon and hoped that the picture will change in the coming months.

“Onion prices have shot up as over 70% of crop from Nashik, which would have been ready for sale in December-January, was destroyed due to unseasonal rains. This has disturbed the cycle of supply in the country. It will be restored after onions from Saurashtra, Rajasthan and Madhya Pradesh start coming into the markets,” Pawar said in Manchar near Pune while inaugurating a government polytechnic.

With the National Democratic Alliance’s rally scheduled in Mumbai over rising prices and corruption on Monday, Pawar chose to clarify on various issues including the role of his ministry, as well as the central government in general.

He blamed the media for creating a misunderstanding that the government determines all food commodity prices.

“We concentrate on wheat, rice, sugar, oilseeds and pulses. All our policies for these items have been successful and therefore we have ample stocks. Wheat and rice are abundant, enough to last for two years, and fresh stocks will be added,” Pawar said, and added, “Prices of food grains in India are less than those in the neighbouring countries and Europe. But we don’t decide what price lady finger will be sold for or whether the farmer is going to grow tomatoes or not. Prices of vegetables are determined at various levels and the government’s role is minimal.”

He pointed out that with wheat and rice stocks being abundant, the Centre is literally dumping them on the states.

“We have been giving states more than what they have been asking. Our role has been to procure, store and supply. It is for the states to disburse the grains. Despite the supreme court asking us five times to revise food grain prices, we haven’t done so, in spite of purchasing them at more than double the price that we are selling them to the people,” Pawar said.

When told that it was the other commodities that the government was doing nothing about, Pawar said that there are several laws at the state level, which, if implemented, could bring prices down.

Milk prices are high because even as the demand is growing at about 5% every year, growth in supply is only about 3.5%. “Besides this, the milk producer would earlier sell all the 10 litres he would produce. Now, he keeps about three liters for his own consumption, which is a good sign for a healthy generation. But, it is also increasing the pressure on demand, creating ground for high prices,” the agriculture minister said.