Centre asks onion farmers not to worry about export curbs, govt restarts procurement
New Delhi: In a move to curb the rising price of onion ahead of festive season, the government has started the procurement of onion at Rs 2,410 per quintal in Maharashtra and Madhya Pradesh for buffer stock. The move of the government aims to guard farmers’ interest amid export curbs to handle onion price rise, commerce and consumer affairs minister Piyush Goyal said on Tuesday.
The minister also asserted that the decision to impose a 40 per cent export duty on onion has been taken to protect the consumers’ interest, but at the same time the Centre has also decided to purchase additional 2 lakh tonnes of onion from farmers to avoid any panic selling. “The government will increase the size of the buffer stock and procure more from farmers if the need arises,” he said.
Last week, the Centre imposed a 40 per cent export duty on onion to restrict outward shipments and boost the local availability amid apprehension about the kharif output and signs of firming of retail prices. It also decided to increase the size of the buffer stock of onion to 5 lakh tonnes for 2023-24 from the earlier 3 lakh tonnes which has already been procured.
Briefing the media, Goyal, however, announced that additional procurement of 2 lakh tonnes of onion for the buffer stock will be done at Rs 2,410 per quintal, which is an ‘historical rate’ and much higher than the average Rs 1,800-1,900 per quintal the farmers normally get from exports. “Some ‘political opponents’ are creating a ‘wrong picture’ about the export duty slapped on onion, and urged farmers not to worry as the Centre has restarted procurement at Rs 2,410/quintal for its buffer stock,” he alleged.
“I would urge all farmers in onion producing states not to worry and indulge in any panic selling. The National Cooperative Consumers' Federation of India (NCCF) and National Agricultural Cooperative Marketing Federation of India (NAFED) have been directed to procure onions from farmers. The NCCF and the NAFED have recommenced the procurement operations in Maharasthra and Madhya Pradesh from Wednesday. Both consumers and farmers are important for us. The government has been taking decisions in the interest of both farmers and consumers,” he said.
The decision on hiking export duty, however, led to protests by farmers and traders in various parts of Maharasthra, especially in Nashik district. “The Centre is constantly in touch with Maharasthra chief minister and two deputy chief ministers on this issue. On export shipments stuck at ports, the Directorate General of Foreign Trade (DGFT) will take a call on those shipments whose bills have been generated prior to the imposition of the export duty,” the minister added.
