India: Government to begin procurement of 5 lakh tonnes of rabi onion in 2-3 days to protect farmers’ interest

Fresh Onion

Vegetables

India

Regulation & Compliances

Market & Price Trends

Published Mar 27, 2024

Tridge summary

In response to the concerns raised by farmers over the falling mandi prices due to the indefinite extension of the onion export ban, the Indian government has committed to purchasing 5 lakh tonnes of rabi onion in the upcoming 2-3 days to support them. This move aims to safeguard farmers' interests by ensuring they receive fair compensation for their produce, either through direct procurement for buffer stock at current rates or by covering the costs if prices drop below production levels. Additionally, the government has introduced measures to address supply-demand imbalances and stabilize retail prices, which include enhancing onion shelf life and promoting the early cultivation of the kharif crop. Special arrangements have also been made to allow onion exports to neighboring countries to fulfill their domestic needs, ensuring that the export ban impacts traders but not farmers, who are currently benefiting from higher wholesale prices compared to the previous year.

Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

New Delhi, Mar 26 (PTI) Amid concern over likely fall in mandi prices in view of extension of onion export ban, the government on Tuesday assured farmers that it will start procurement of 5 lakh tonnes of rabi onion in next 2-3 days to protect their interest. Last week, the commerce ministry extended the ban on onion export till further orders. The ban on onion shipment was valid till March 31. The onion export ban is affecting traders and not farmers as average mandi (wholesale) prices are ruling currently at around Rs 13-15/kg in Maharasthra, which is almost double from the previous year level, he said. “Even if prices crash, we will protect the interest of farmers,” he added. The secretary said the government normally buys onion for the buffer stock at a prevailing mandi rates. However if the rates fall below the cost of production, the government will ensure their cost is covered at least. In 2023-24, the government had procured 6.4 lakh tonnes of onion (both rabi and kharif ...

Source: Theprint