Lok Sabha Question No. 1412 (UNSTARRED), answered on 2017-07-25
Subject: Remunerative Prices for Onion
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: BANSHILAL MAHTO

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

## LOK  SABHA

## UNSTARRED QUESTION NO. 1412 TO BE ANSWERED ON THE 25 TH  JULY, 2017

## REMUNERATIVE PRICES FOR ONION

1412.  DR. BANSHILAL MAHATO:

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

- (a) whether  the  Government  has  taken  cognizance  of  the  recent  incidents  regarding  offloading onions on road, running bulldozer on onions by the farmers at many places including in Maharashtra and Madhya Pradesh for not getting even the production cost of onion on account of bumper production of onion;
- (b) if so, the details thereof and the reaction of the Government thereto;
- (c) whether the Government is taking initiatives to provide minimum support price/remunerative price for the produce to the farmers;
- (d) if so, the details thereof; and
- (e) the  steps  taken/proposed  to  be  taken  by  the  Government  to  increase  the  storage capacity of other agricultural produce including onion in the country?

## 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): There are reports of protests by farmers in Maharashtra and Madhya Pradesh on various demands including better prices of agricultural produce.  Horticultural produce is highly perishable  in  nature  due  to  higher  moisture  content  and  cannot  be  stored  at  ambient temperature for longer period, many of them are also not amenable to be stored in cold storage for  sustained period.  Therefore, arrival of the produce in very high volumes during the peak harvesting season sometimes depressed Wholesale Prices.  Production of onion is estimated at 21.56 million metric tonnes in 2016-17 as compared to 20.93 million metric tonnes in 2015-16.

(c) & (d): Government  implements  Market  Intervention  Scheme  (MIS)  for  procurement  of agricultural and horticultural commodities including onion which are perishable in nature and are not covered under the Price Support Scheme.  The objective of intervention is 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.

(e): For  Foodgrains,  total  storage  capacity  of  783.17  lakh  metric  tonnes  including  covered godowns and Cover and Plinth is available as on 31.05.2017 against the stock of 555.40 lakh metric  tonnes.    Hence,  sufficient  storage  facilities  are  available  for  storage  of  central  pool foodgrains  stock.    In  addition  to  above,  Government  is  implementing  Private  Entrepreneurs Guarantee  Scheme,  Central  Pool  Scheme  and  Construction  of  Steel  Silos  for  strengthening food grains storage infrastructure.

Government is implementing Mission for Integrated Development of Horticulture (MIDH) for  development  of  Horticulture  which  also  provides  assistance  for  storage  of  horticulture through  setting  up  of  cold  storage  and  low  cost  onion  storage.    For  perishable  horticulture produce,  Government  provides  credit  linked  back  ended  subsidy  @35-50%  for  setting  up  of cold storage.  For establishment of low cost onion storage at farm level of capacity up to 25 metric  tonnes,  subsidy  @  50%  for  maximum  permissible  cost  of  Rs.  1.75  lakh  per  unit  is available.    So  far  under  the  scheme,  4392  cold  storage  with  capacity  of  19.47  million  metric tonnes and 12566 number of onion storage with capacity of 2.48 lakh metric tonnes has been created.

********