Onion traders meet Devendra Fadnavis

Onion traders and APMC members from Lasalgaon (Nashik) met chief minister Devendra Fadnavis and demanded to intervene in the onion price issue. Onion prices have declined drastically in the wholesale market despite National Agricultural Co-operative Marketing Federation of India (NAFED) procuring it at the rate of Rs 700 per quintal.

According to Jaydatta Holkar, chairman of Agriculture Producer Market Committee (APMC), this year Lasalgaon produced an additional 13.88 lakh metric tonnes than the previous year (2014-15). Maharashtra has recorded 203.15 lakh metric tonnes of which 42.8 lakh metric tonnes were sent to APMC for sale. Last year, it was just 35 lakh metric tonnes, which means this year, surplus onion came to the market and hence, the price of onion fell drastically,” said Mr Holkar. Lasalgaon is Asia’s biggest market for onions and its price across the nation is decided by Lasalgaon APMC.

When asked why the price of onions had declined and what they asked chief minister about, Mr Holkar said, “Last year, maximum onions were ruined by unseasoned rain and hailstorm. So, the price increased that year and the Union government indirectly banned export of onions by increasing the export tax.”

“Though the decision was taken to control hike in price of onions in local market, we have lost faith in the international market,” Mr Holkar said.

The delegation under the leadership of Mr Holkar and other members of APMC met Mr Fadnavis and demanded that the state should recommend to the Union government to intervene, as the price of onions had fallen to between 400 and 700 per quintal. Mr Holkar said he wanted the government to compensate onion producers.

“We have asked the government to give us a subsidy of Rs 300 to 400 per quintal as an incentive to export onion, while NAFED, the nodal agency of onion procurement should procure onion at the rate of Rs 1,500 per quintal. The Union government should fulfil its assurance and give 50 per cent of the profit based on production cost to the farmers,” Mr Holkar said.

He said the chief minister had assured the delegation he would take up the matter with PM Narendra Modi and Union agriculture minister Radha Mohan Singh.