Additional 2 lakh tonne onion procurement from farmers begins in Maharashtra

File Photo/PTI

The central government has initiated the procurement of an additional 2 lakh tonnes of onions from farmers in Maharashtra, following protests by Maharashtra farmers against the government's decision to impose a 40% export duty on onion sales. The announcement of this procurement was made after a meeting between Union Minister Piyush Goyal and Maharashtra Agriculture Minister Dhananjay Munde in Delhi.

Union Minister Goyal stated, "The central government always works in the best interest of farmers and buys their produce from time to time... To create a balance between farmers and consumers, the government has imposed a 40 per cent export duty on onion. This is to ensure domestic availability." The procurement is being carried out by the National Cooperative Consumers' Federation (NCCF) and the National Agricultural Cooperative Marketing Federation (NAFED).

Goyal also mentioned that if necessary, more onion procurement from other onion-growing states would be considered. The government had earlier decided to maintain a buffer stock of 3 lakh tonnes of onions for the 2023-24 season, but due to rising prices and increased demand, this buffer stock was raised to 5 lakh metric tonnes.

Also read: Maharashtra: Onion auction to remain closed indefinitely in Nashik wholesale markets to protest 40 pc duty on export

Rabi onions, harvested from April to June, account for a significant portion of India's onion production and meet consumer demand until the Kharif crop is harvested later in the year. The procurement decision aims to stabilize onion prices and ensure sufficient domestic supply.

The Maharashtra Agriculture Minister, Dhananjay Munde, met with Piyush Goyal and expressed concerns about the export duty's impact on Maharashtra farmers. Goyal assured that the matter would be considered and, in the meantime, NAFED would purchase an additional 2 lakh tonnes of onions from Maharashtra at an agreed price of Rs 2,410 per quintal.

To address price rise and ensure domestic supplies, India had recently imposed a 40% export duty on onions until December 31, 2023.

Maharashtra Deputy Chief Minister Devendra Fadnavis on Tuesday said the Centre has decided to purchase two lakh metric tonnes of onion at the rate of Rs 2,410 per quintal, and expressed hope this will provide relief to producers of the key kitchen staple in the state.

He also said special procurement centres will be set up in Nashik and Ahmednagar in the state. (Agencies)