The central government had announced on Tuesday that Nafed (National Agricultural Cooperative Marketing Federation of India) and NCCF (National Consumer Co-operative Federation of India ) would sell onions at Rs 35/kg to consumers in Delhi and Mumbai, which led to onion prices crashing by Rs 5/kg at the Lasalgaon market, after hitting Rs 47/kg in the morning trade on that day.
The onions had traded in the range of Rs 20-38/kg at the Lasalgaon APMC on August 31. However, when the markets opened on September 3 after a two day holiday, the highest price hit Rs 47/kg. The report of entry of Nafed in retail trade brought the prices down by Rs 5/kg on the same day. There were concerns amongst the farmers that the prices may fall further. However, after the centre revealed the plan to increase the sale of onions from the buffer stock in a staggered manner, prices recovered partially and gained some stability. The government’s objective is to use ‘calibrated and targeted release of onion from the government buffer to make the essential vegetable available to consumers at affordable prices’.
“Prices recovered on Friday as Nafed’s onion will come to the market gradually. The arrivals have also declined as farmers and stockists are monitoring the weather situation expecting that heavy rainfall in September may lead to further increase in onion prices,” said a leading onion trader from Nashik, requesting not to be identified.
Government is selling onions in retail through outlets and mobile vans of NCCF and NAFED, e-commerce platforms and outlets of Kendriya Bhandar and SAFAL in major consumption centres. “The quantity and disposal channels for onion will be enhanced, deepened, intensified and diversified as per the trend in onion prices,” the Ministry of Consumer Affairs had said in a release.
Retail disposal of onions was launched in Delhi NCR and Mumbai on Thursday, which would be followed by launches in Kolkata, Guwahati, Hyderabad, Chennai, Bangalore, Ahmedabad, Raipur and Bhubaneshwar in next one week. The Ministry plans pan India distribution by the third week of September.The onion farmers from Maharashtra have been disappointed with the government’s price control measures. “On the one hand the government says that the kharif sowing acreage has doubled this year and yet it is trying to suppress the onion prices. The central government should have started sale of onions from its buffer stock only if there was a real shortage of the onions in the market,” said Bharat Dighole, president, Maharashtra Onion Growers’ Association.