Lok Sabha Question No. 2001 (UNSTARRED), answered on 2017-03-14
Subject: Remunerative Prices for Onion
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: BHARATENDRA SINGH, DHANANJAY BHIMRAO MAHADIK, SUPRIYA SADANAND SULE, JAYAKUMAR JAYAVARDHAN, VIJAYSINH MOHITE PATIL

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA

## UNSTARRED QUESTION NO.2001

TO BE ANSWERED ON THE 14 TH   MARCH, 2017

## REMUNERATIVE PRICES FOR ONION

2001.      KUNWAR BHARATENDRA: SHRI DHANANJAY MAHADIK: SHRIMATI SUPRIYA SULE: DR. J. JAYAVARDHAN: SHRI MOHITE PATIL VIJAYSINH SHANKARRAO:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether onion prices have crashed this year due to a glut in the market since December and if so, the details thereof;
- (b) whether  glut  in  the  market  has  adversely  affected  onion  farmers  of  Nashik,  if  so,  the details thereof;
- (c) whether onion farmers from Nashik have demanded for better price for their crop from the Union Government and if  so, the details thereof;
- (d) whether the Government has taken any remedial measures to assist the onion farmers to get them fair price for their produce and if so, the details thereof; and
- (e) the other steps taken by the Government to boost the demand of onions in the market and  hike  the  minimum  price  of  procurement  of  onions  to  mitigate  sufferings  of  the  onion farmers?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंालय म राय मंी (SHRI  S.S. AHLUWALIA)

- (a) & (b): Price of onion differs from place to place and depends on various factors such as seasonality  of  production,  quality  of  produce,  mismatch  in  demand  and  supply  etc.  Arrival  of produce  in  very  high  volumes  during  the  peak  harvesting  season  sometime  depresses wholesale prices. As per First Advance Estimate for 2016-17, production of onion is estimated at 19.71 million tonnes compared with 20.93 million tonnes in 2015-16. Prices of onion in Nashik centre ranged between Rs. 400-600 per quintal for the period July, 2016- February, 2017.
- (c) to (e): Representations are received from time to time from various farmers' organisations requesting for increase in support price of various agricultural commodities.

Government announces Minimum Support Price (MSP) for those agricultural commodities  which  are  widely  grown,  have  large  area  under  cultivation,  are  items  of  mass consumption  with  fairly  long  shelf  life  and  are  necessary  for  maintaining  food  security.  For agricultural  and horticultural  commodities which are perishable in nature and are not covered under the Price Support Scheme, Market Intervention Scheme (MIS) is implemented to protect the growers of these commodities from making distress sale in the event of bumper crop during the  peak  arrival  period  when  the  prices  tend  to  fall  below  economic  levels  and  cost  of production. It is implemented on the specific request of the concerned State/UT Government, which has to bear 50% of the loss (25% in case of North-Eastern States), if any, incurred on its implementation.

Recently, as a precautionary measure, Government has requested the State Government of Maharashtra to come forward with their proposal for MIS, in case the price of onion is ruling below economic levels in the State. However, no proposal has been received from the State Government till date.

Government has  also  taken  several  other  measures  to  ensure  remunerative  prices  to farmers  and  stabilize  its  price  in  the  market  which,  inter-alia,  include  Electronic  National Agriculture  Market  (e-NAM),  mobilisation  of  farmers  into  Farmer  Producer  Organisations  for aggregation and economies of scale, assistance for development of post harvest management and marketing infrastructure, etc.

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