Lok Sabha Question No. 238 (STARRED), answered on 2019-07-09
Subject: Prices of Onion
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Rahul Ramesh Shewale, Sujay Radhakrishna Vikhepatil

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

## LOK  SABHA STARRED QUESTION NO. 238

TO BE ANSWERED ON THE   9 TH  JULY, 2019

## PRICES OF ONION

*238.    SHRI RAHUL RAMESH SHEWALE: DR. SUJAY RADHAKRISHNA VIKHE PATIL:

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

- (a) whether it is a fact that prices of onion have been manipulated by the traders' lobby due to laxity of the Government to keep a check on them and it's inefficient administration, if so, the details thereof; (b) whether  prices  of  onion  have  declined  drastically  in  the  market,  if  so,  the  details thereof along with the reasons therefor; (c) whether  the  Government  proposes  to  procure  onion  from  the  farmers  directly  to ensure better price to the farmers and supply of onion at affordable price during the lean season, if so, the details thereof; (d) whether  the  Government  also  proposes  to  allow  export  of  onion  for  better  price realisation, if so, the details thereof; (e) whether according to a report- 'Competitive Assessment of Onion Markets in India', the onion trade is unilaterally dictated by traders and middle men and has benefited them the most, if so, the details thereof and the steps being taken by the Government to keep a check  on  the  role  of traders' lobby  in  onion  prices  and  regulate  onion  market  to avoid/pervent steep fluctuation in onion prices; and the various other steps taken by the Government to provide remunerative price for
- (f) onions in order to save farmers from the burden of debt?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी

## (SHRI NARENDRA  SINGH TOMAR)

- (a) to (f): A statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (f) OF LOK SABHA STARRED QUESTION NO. 238  DUE FOR REPLY ON 9 TH  JULY, 2019.

- (a) & (b):    Agriculture Marketing is a State subject  and wholesale marketing of agriculture commodities  are  regulated  in  mandies  under  respective  State  regulations.  Government  of India plays a supportive role and has circulated the Model Agricultural Produce & Livestock Marketing (Promotion & Facilitation)  Act,  2017  for  its  adoption  by  States/Union  Territories. Model  APLM  Act,  2017  provides  for  de-regulation  of  perishable  fruits  and  vegetables including onion. So far 17 States & Union Territories have de- regulated fruits and vegetables from the State Agriculture Marketing Regulation in varied form.

The wholesale prices of agricultural commodities including that of onion at any given point of time depends on various factors such as the normal market forces of demand and supply  as  well  as  on  quality,  perishability  and  prevailing  weather  conditions.  Onion  is produced in the country mostly in three seasons namely Pre-kharif, post Kharif and Rabi in mostly 08 to 10 States and  is consumed across the country round the year. The price of agricultural produce is relatively lower immediately after its harvest due to increased supply in  the  market,  which  gradually  picks  up  thereafter.  The  wholesale  prices  of  onion  have experienced downfall from October 2018 to February, 2019 and gradually started increasing from March 2019 onwards.

- (c):            Government  of  India  has  decided  to  create  a  buffer  stock  of  about  60,000  MT  of onions during Rabi 2019 season under the Price Stabilization Fund (PSF) for its utilization towards calibrated release during the lean season. As on 2.7.2019, about 53,000 MT onions have been procured through National Agricultural Cooperative Marketing Federation of India (NAFED) under PSF.

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(d):          The  Minimum Export Price (MEP) is imposed on export of onion as and when it is required  for  stability  of  domestic  prices  in  the  country.  At  present,  export  of  onion  is  free without any quantitative restrictions and presently, the MEP is Nil.

(e)  & (f): A  study  titled  'Competitive  Assessment  of  Onion  Markets  in  India'  was conducted  by  the  Agricultural  Development  and  Rural  Transformation  Centre,  Institute  for Social  and  Economic  Change,  Bangalore,  for  the  Competition  Commission  of  India  which claimed that  most of the trading is in the hands of commission agents and traders.

The Government is promoting market information system of agricultural commodities including  that  of  onion  through  Agricultural  Marketing  Information  Network  ( AGMARKNET ) Portal to deal with asymmetry in market information.

The Government is implementing the Market Intervention Scheme  (MIS) for procurement  of agricultural and  horticultural commodities  including onion, which are generally perishable in nature. The basic objective of MIS is to protect the growers of these commodities from making distress sale in the event of a bumper crop during the peak arrival period when the prices tend to fall below economic levels and cost of production. The MIS is implemented on the specific  request  of  the  State  Government/UT  Administration  willing  to share the loss with the Central Government on 50:50 basis (75:25 in case of North Eastern States).

Government has also taken several other measures to ensure remunerative prices to farmers  and  stabilize  its  price  in  the  market  which,  inter-alia,  include  National  Agriculture Market (e-NAM), mobilisation of farmers into   Farmer Producer   Organisations   (FPOs)   for for  aggregation  and  economies  of  scale,  assistance  for  development  of  post  harvest management and marketing infrastructure, from various schemes of the Government such as Mission  for  Integrated  Development  of  Horticulture  ( MIDH )  and  Agricultural  Marketing Infrastructure (AMI) etc.

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