NEW DELHI: The Indian government, led by Union Minister Piyush Goyal, has initiated the purchase of onions at a rate of Rs 2,410 per quintal in Maharashtra as a measure to safeguard the interests of farmers amidst restrictions on exports.
Goyal announced in a press briefing that both the NCCF (National Cooperative Consumers Federation) and NAFED (National Agricultural Cooperative Marketing Federation) have already begun selling onions to consumers across the nation at a subsidized price of Rs 25 per kilogram. He emphasized the value of both consumers and farmers and urged the farmers not to be concerned but rather to sell their produce at fair prices.
Goyal assured that farmers need not be anxious and should avoid panic-driven sales. He highlighted ongoing communication with Maharashtra Chief Minister Eknath Shinde, Deputy Chief Minister Devendra Fadnavis, and other state ministers, including Ajit Pawar. The Union Commerce Minister also pointed out that the government will maintain the stability of onion prices by offering them to consumers at Rs 25 per kilogram, specifically targeting regions where prices have escalated.
The escalation of onion prices, which have increased from Rs 30 to Rs 40 per kilogram, prompted key decisions on August 17. A 40 percent export tax was imposed to counter the price surge. Furthermore, to assist farmers, the NCCF and NAFED are set to acquire 5 lakh tons of onions instead of the previous 3 lakh tons, with 2 lakh tons being procured at the rate of Rs 2,410 per quintal. These organizations will sell onions to consumers at a subsidized price of Rs 25 per kilogram in various regions, with the government covering the subsidy cost.
In response to an anticipated price spike, the government introduced a 40 percent export duty on onions until December 31, with immediate effect, to enhance the availability of onions within the country. However, this decision met with opposition. The Agriculture Produce Market Committee (APMC) of Lasalgaon in Nashik, which is Asia's largest onion market, suspended onion trading indefinitely in protest of the export duty imposition. This move compelled the committee to procure onions locally from the state.
