The government has set a target of 0.36 million hectare (MH) for kharif onion this year, which is 27% more than 0.28 MH reported in 2023.
The government has procured nearly 0.45 million tonne (MT) of onion from farmers at market prices in the current fiscal so far for buffer against the target of 0.5 MT, at much higher price compared to previous year.
Sources told FE that agencies such as farmers’ cooperative Nafed and National Cooperative Consumers’ Federation of India in since April have purchased onion at an average price of Rs 25/kg from the farmers, compared to procurement of staple vegetables at an average price of Rs 17/kg in FY24.
The government would decide the option of holding or releasing onions from the buffer in a calibrated manner to maintain stability in prices of onion, the official said.
Officials said the government agencies will soon meet the target of purchase of onion for the current fiscal for initiating market intervention programme while sowing of kharif onions have commenced in brisk note in the key growing areas in Karnataka, Maharashtra and Madhya Pradesh with adequate monsoon rains this year.
The government has set a target of 0.36 million hectare (MH) for kharif onion this year, which is 27% more than 0.28 MH reported in 2023.
In FY24, the agencies had purchased 0.64 MT of onion both in rabi and kharif seasons for buffer. Subsequently the agencies sold the onion at subidisied rate of Rs 25/kg.
“The timely intervention and calibrated release ensured stabilization of retail prices effectively without impacting farmer realization,” according to an official note.
Officials said the retail prices are currently ruling around Rs 40/kg which is likely to decline soon. Retail inflation in onion had been in double digits since July, 2023 and price rise was 36.71% on year in July.
The wholesale mandi prices of onion at Lasalgaon, Nashik – the hub of country’s onion trade is currently ruling in the range of Rs 2500/ quintal – Rs 3000/ quintal against Rs 1500/quintal – Rs 2000/quintal prevailed three month back.
“The prices are continue to be at the current level till the kharif crops start arriving in the market by September,” Jaydutt Holkar, director, agricultural produce market committee (APMC), Lasalgaon, Nashik, said
The agriculture ministry in its first advance estimate has projected onion production in the 2023-24 crop year (July-June) at around 25.47 MT, a decline of 16% compared to 25.47 MT in the previous year. Rabi onion, which has better shelf life compared to kharif output, has a share of around 72% of total annual production of the key vegetable.
Since May, the government has initiated registration of farmers well in advance for procurement of kharif crops – onion, tur and urad aimed at building buffer stock.
Source:financialexpress.com