Government Directs Two Central Agencies to Procure Onions Directly From Farmers

In response to the market dynamics and to support farmers affected by fluctuating onion prices, two central agencies, the National Cooperative Consumers Federation of India (NCCF) and the National Agriculture Cooperative Marketing Federation of India (Nafed), have been instructed to procure onions directly from farmers.

The NCCF has identified 12 centers for onion procurement, although the procurement price has not been officially announced yet. Farmers dissatisfied with prevailing market rates are encouraged to engage with farmer-producer companies. These companies will purchase the onions on behalf of the NCCF, ensuring that farmers receive appropriate remuneration, as stated by a senior official.

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In Nashik, all agriculture produce marketing committees (APMCs) have initiated onion auctions. Presently, more kharif onions are entering the markets, while the availability of storable rabi onions is decreasing. Rabi onions previously commanded an average price of Rs 3,200 per quintal, whereas kharif onions are currently priced at around Rs 2,150 per quintal, according to an officer from the Lasalgaon APMC.

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The government's decision to initiate onion procurement aims to establish a buffer stock, preventing further price declines—especially following the imposition of an onion export ban. While this norm applies nationwide, it is expected to particularly benefit farmers in Nashik, a significant onion-producing region.

Despite the government's intentions to support farmers, some in the farming community express reservations. Farmers who were beginning to receive favorable prices for their produce feel the export ban decision is perplexing and could adversely impact their earnings. Bharat Dighole, the founder of Onion-Producers Organisation, voiced concerns, stating, "The farmers, ravaged by the vagaries of nature, had just started getting good money for their produce. Just then the government announced the export ban. The decision to ban exports is unfathomable."

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