After tomatoes, govt to sell onions at discounted price

New Delhi: In a bid to keep the prices of essential commodities under control, the government on Tuesday announced the selling of onions at a discounted rate of Rs 25/kg to consumers.

The Centre has started the procurement of an additional 2 lakh tonne of onion at the rate of Rs 2,410 per quintal from farmers in Maharashtra. Onion is the second price sensitive commodity after tomato that is being sold at a discounted rate by the Centre.

The decision in this regard was announced by Union Minister for Consumer Affairs Piyush Goyal on Tuesday after holding a meeting with Maharashtra agriculture minister. As per the decision, the onions will be sold at discounted rates in the areas suffering from high onion prices through NAFED and NCCF.

Goyal further said, “The farmers need not worry about anything and they can sell onions at a good price. They (farmers) are requested to not indulge in panic selling.”

The announcement of the start of procurement was made after a meeting between Goyal and Maharashtra Agriculture Minister Dhananjay Munde in Delhi.

“The central government always works in the best interest of farmers and buys their produce from time to time. NCCF and NAFED on the direction of the government had procured 3 lakh tonne onions from various parts of Maharashtra, which in the process increased the prices. To create a balance between farmers and consumers, the government has imposed a 40 percent export duty on onions to ensure availability of onions in the domestic market,” Goyal said.

“The two agricultural agencies – NCCF and NAFED -- have started procuring additional 2 lakh tonne of onion directly from farmers at Rs 2,410 per quintal. If need be, we are ready to procure more from other onion growing states,” he said.

The decision to impose 40 percent export duty on onions is also aimed at putting a check on prices of the kitchen staple ahead of the festive season.

The price of onion in the retail market has touched Rs 40 and it is estimated that its price may touch Rs 60 and

above.

“Both consumers and farmers are important for us. ...The government has been taking decisions in the interest of both farmers and consumers,” Goyal said.

The minister said 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.

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.