PMO probes ‘irregularities’ in Nafed’s onion procurement

Allegations of corruption in the onion procurement process by the National Agricultural Cooperative Marketing Federation of India (Nafed) have reached the highest levels of government, leading to an investigation by the Prime Minister’s Office (PMO). Onion farmers in Nashik have complained that intermediary companies exploited the procurement system, leading to massive financial irregularities and mistreatment of farmers.

In response to these complaints, the PMO has ordered a thorough inquiry. Senior government officials visited Nashik this week to investigate the alleged malpractice. Over the course of several hours, they questioned farmers and production companies, digging into claims that intermediaries had inflated onion prices during the procurement process and lined their pockets at the expense of farmers.

The investigation was triggered by viral social media posts highlighting the widespread corruption. Farmers accused Nafed of purchasing onions through intermediaries at inflated rates, bypassing direct deals with the farmers themselves. This prompted swift action from the authorities, who are now uncovering the truth.

According to reports, officials involved in the inquiry inspected documents and scrutinised records on-site. Their focus was on understanding how the procurement process unfolded and whether fraud had occurred. A local farmer lodged a formal complaint, which added weight to the allegations and sparked further investigation into the prices paid for onions.

Nashik farmers, furious at the manipulation, met with government officials and demanded a detailed audit of Nafed’s procurement practices. Their grievances centred on calls for strict action against those responsible for the irregularities, which have reportedly led to significant financial losses for farmers.

Misappropriation of crores

The controversy comes under the framework of the Union government’s Price Stabilisation Scheme, which aims to create a buffer stock of five lakh tonnes of onions this year. Nafed and the National Cooperative Consumers’ Federation of India (NCCF) have each been tasked with procuring two-and-a-half lakh tonnes. Farmers alleged that instead of purchasing onions directly from farmers, many federations and Farmer Producer Companies (FPCs) are alleged to have stocked onions bought earlier at lower prices, and even sourced them from select traders. These onions were then passed off as government-procured produce, leading to crores of rupees being misappropriated.

In light of these developments, the Maharashtra State Onion Growers Association, led by its founder president Bharat Dighole, has called for a probe. Farmers have lodged numerous complaints with the Onion Growers Association, accusing FPCs and federations of fraudulently using bank passbooks, land records (7/12 extracts), and Aadhaar cards of relatives and close acquaintances to push through paperwork. They claim that companies stored cheap onions in warehouses and later falsely presented them as onions purchased for Nafed and NCCF.