Govt gameplan in place to control onion prices

The state government on Friday took two major decisions to check the rising onion prices. The first decision envisaged direct procurement of onions from farmers and traders and the second was to offer an increased subsidy of 40 per cent to encourage farmers for holding larger amount of onion. The government now hopes to see the onion prices in the Mumbai retail market coming down by 20 to 25 per cent by early next week.

The co-operatives like Apna Bazar and Sahakari Bhandar have been asked by the state marketing department to procure onions directly from the farmers or from the Agriculture Produce Marketing Committee markets. “We have waived the cess of 80 paise on the stock brought by such societies as an incentive.

The marketing officials in the six districts have been asked to make adequate stock available to be brought directly to Mumbai. By latest Tuesday, the stock will be available in Mumbai, leading to a major decline in the onion prices,” Sudhirkumar Goyal, secretary, marketing, told DNA.

“The farmers and traders hold 3 lakh tonnes of onion at any given time, and if the holding capacity is increased, the farmers will be in a position to earn additional income for their produce. The government has decided to share 40 per cent of the holding expenses incurred by the farmers, earlier it was only 25 per cent,” he said.

Goyal said that the sudden rise in the price of the onion is due to rumours of a ban on its export. “The Centre had only expressed its desire to cancel the NOCs of the exporters, if they do not adhere to their commitments.” said an official from the marketing department.

Sahakari Bhandar’s general manager Lalit Dhakane said the Bhandar is chalking out plans for directly buying the onions from the markets and the farmers. “Today, we are selling the onion at Rs25 per kg. But once the onion bought directly arrives, which is expected in next two days, we will be able to sell it at no profit no loss basis. through our 16 outlets.”