Centre to buy onion from farmers at ₹24/kg against last year’s ₹14-17
Amid protests by farmers and traders in Maharashtra against the imposition of 40 per cent export duty on onion, Food Minister Piyush Goyal announced on Tuesday that the Centre’s nominated agencies, NCCF and NAFED, will buy the edible bulb at ₹2,410/quintal, which will be beneficial for farmers as procurement has never been done at such a high price. However, the purchase price will be revised after a week based on market rates, said sources.
Addressing the media in New Delhi, along with Maharashtra’s Agiriculture Minister, Dhananjay Mundhe, Goyal said the rate for procurement fixed on Tuesday after the State government requested the Centre’s intervention is the “highest ever”. He alleged that some political opponents are creating a wrong picture about the export duty slapped on onion.
The Minister urged farmers not to worry as the Centre has re-started procurement for its buffer stock, which was raised on Sunday to five lakh tonnes (lt) from three lt earlier. Goyal said as the procurement of three lt was earlier completed when rates were low and farmers were in distress, the purchase of additional two lt commenced from Tuesday and the quantity will further be enhanced if necessary.
Stressing that the decision to impose a 40 per cent export duty on onion has been taken to protect the consumers’ interest for which retail sales through NCCF and NAFED also have started at ₹25/kg, Goyal said the decision to buy additional two lt of onion directly from farmers will help them to avoid any panic selling.
The Minister also said that the purchase rate of ₹2,410 per quintal is much higher than the average ₹1,800-1,900 per quintal received by farmers from export.
When both agencies had purchased 1.5 lt of onion, each the average procurement cost was about ₹1,400-1,500/quintal by Nafed and ₹1,600-1,700 per quintal by NCCF, said sources.
On August 19, the Centre had imposed a 40 per cent export duty on onion to restrict outward shipments and boost the local availability. The decision on export duty led to protests by farmers and traders in various parts of Maharashtra, especially in Nashik district.
The minister also said that onion production was 317 lt in 2022-23 and 318 lt in 2021-22. He said sowing of kharif onion is underway and if the total coverage remains same at last year’s level, the production is expected to be better.
“Some political opponents have been trying to present a wrong picture [about export curbs]. I would urge all farmers in onion producing states not to worry and indulge in any panic selling. NCCF and NAFED have been directed to procure onion from farmers,” said Goyal, adding he was in constant touch with the Maharashtra Chief Minister and the two Deputy CMs on this issue.
Between April 1 and August 4 this fiscal, 9.75 lakh tonnes of onions have been exported from the country. The top three importing countries in value terms are Bangladesh, Malaysia and the UAE.