Pune: Government Sets Uniform Onion Procurement Rate Amidst Farmer Protests
Pune, 25th June 2024: The Ministry of Consumer Affairs, Food & Public Distribution of India has responded to farmer protests against fluctuating onion procurement rates by setting a uniform weekly rate for each state. Effective this week, the National Agricultural Cooperative Marketing Federation of India Limited (NAFED) and the National Co-operative Consumers’ Federation of India Limited (NCCF) will purchase onions in Maharashtra at Rs 2,940 per quintal.
For the past month, the Ministry has overseen onion procurement through NAFED and NCCF under the Price Stabilisation Fund (PSF), aiming to procure approximately five lakh tonnes nationwide. Previously, daily district-wise rates led to varied and often significant price differences, prompting widespread criticism. In response, the central government has now mandated uniform rates across states, set weekly.
Despite these efforts, challenges persist. Market prices for good quality onions range from Rs 30-34 per kg in major onion-growing areas, notably higher than the government’s procurement rate of Rs 29.40 per kg. Delays in payments from NAFED and NCCF have also hindered effective procurement, limiting purchases primarily to Farmer Producer Companies and Onion Producers Societies rather than directly benefiting individual farmers or open markets.
Kuber Jadhav, the state coordinator of Swabhimani Shetkari Sanghatana, advocates for onion purchases through bidding from market committees to ensure fairer outcomes for farmers. Similarly, Bharat Dighole, President of the Onion Growers Association, criticizes the current procurement process, highlighting the disconnect between government rates and market realities. He calls for broader measures to address inflation beyond focusing solely on onion prices.
