Onion farmers lock horns with govt over release of buffer stock
Growers in Maharashtra have threatened to agitate against the Centre’s move to release onion from the buffer stock of 3 lakh tonnes created this year. However, Bharati Pawar, Union Minister of State for health and family welfare who represents the Dindori parliamentary constituency in Nashik, said the government has no intention to sell the onion stock in Maharashtra and bring down the prices.
Speaking to reporters, Pawar said onion farmers in the State must not panic with the government’s decision to release the onion stocks by targeting key markets in States or regions where retail prices are ruling above the all-India average and also where the rates of increase in prices over previous month and year are above the threshold level.
Also Read | July inflation raises more than ‘transient’ questions
“NAFED will not bring its stock to Maharashtra but only provide it to the States where there is a shortage of onion. I had discussions with NAFED officials about this matter. NAFED will not indulge in bringing down onion prices and causing financial loss to farmers” said Pawar. She added that NAFED and NCCF will go for more onion stock procurement.
Buffer stock
According to the Ministry of Consumer Affairs, the government has maintained onion buffer under the Price Stabilisation Fund to check the volatility in the prices of onion. The annual buffers have been built by procuring onions from rabi harvest for release in major consumption centres during the lean season.
Also Read | Despite record high arrivals, onion prices up 28% in a month
The onion buffer size has tripled in the past four years – from 1.00 lakh tonnes in 2020-21 to 3.00 lakh tonnes in 2023-24. The onion buffer has played a key role in ensuring the availability of onion to consumers at affordable prices and in maintaining price stability, according to the Ministry.
Onion farmers agitation
Bharat Dighole, president of the Maharashtra State Onion Growers Association, said over the last few months, onion farmers have been selling onions at the minimum price and many farmers have not even recovered production costs. “ The government has not intervened in the market when farmers were suffering heavy losses and now when prices are getting better the government wants to sell the buffer stock. We will oppose any move to bring down onion prices in the market” he said.
Also Read | Onion sowing set to gain pace as monsoon gathers pace in Karnataka, Maharashtra
Dighole said hailstorms and rains in March and April damaged the onion crop and some farmers stored the remaining stock in chawls. But huge stock in chawls got rotten due to humidity and that has caused a shortage in the market.
The Centre decided to release onion from the buffer stock after modal prices (the rate at which most trades take place) increased by over 65 per cent from ₹1,370 a quintal on August 1 to ₹2,301 August 11 at Lasalgaon, Asia’s largest onion market, in Maharashtra. On Thursday, the modal price was ₹2,280.