Lok Sabha Question No. 303 (UNSTARRED), answered on 2021-07-20
Subject: Onion Cultivation
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: P. Velusamy

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

## LOK SABHA UNSTARRED QUESTION No. 303

TO BE ANSWERED ON THE 20 TH JULY, 2021

## ONION CULTIVATION

303. SHRI VELUSAMY P.:

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

- (a) the total quantity of onions produced in the country during the last three years and the current year;
- (b)  whether  the  Government  is  considering  any  proposal  to  ban  export  of  onions permanently since the demand is higher than supply in the country;
- (c)  whether the amendment to Essential Commodities Act, 1955 by imposing stock limit will affect onion-producing farmers; and
- (d) if so, the steps taken by the Government to augment the income of the farmers who can stock their produce to get better price in future?

## ANSWER

## THE MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी ( SHRI NARENDRA SINGH TOMAR)

- (a):   The quantity of Onions produced in the country, during 2017-18, 2018-19, 201920, and 2020-21 (2 nd Advance Estimates) is as under :-

| Onion Production in the country   | Onion Production in the country   | Onion Production in the country   | Onion Production in the country   |
|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|
| 2017-18                           | 2018-19                           | 2019-20                           | 2020-21 (2 nd Adv. Est.)          |
| 232.62                            | 228.19                            | 260.91                            | 269.16                            |

(b)  & (c): Department of Consumer Affairs (DoCA) has intimated that there has been no proposal to ban export of onions, or impose stock limits on onions.

DoCA  has  further  reported  that  The  Essential  Commodities  Act,  1955  was amended in 2020. Though this amendment a new sub-section (1A) under Section 3 of  the Essential Commodities (EC) Act, 1955 was inserted.  Section 3(1A) (a) now provides that  foodstuffs,  including  cereals,    pulses,  potato,  onions,  edible  oil  seeds and  oils  shall  only  be  regulated  under  extra  ordinary  circumstances  which  may include  war,  famine,  extra  ordinary  price  rise  and  natural  calamity  of  grave  nature. Section  3(1A)(b)  provides  that  any  imposing  stock  limit  would  be  based  on  price triggers such as hundred per cent increase in retail price of horticultural produce and fifty  percent  increase  in  retail  price  of  non-perishable  agricultural  foodstuff  over  the immediately  preceding  twelve  months  or  average  retail  price  of  last  five  years whichever is lower. The Amendment includes a definition of value chain participants covering all the entities who add value to each stage from production to consumption. It  is  a  visionary  step,  one  which  would  radically  alter  the  incomes  and  growth prospects  of  farmers  and  incentivize  investment  in  the  entire  agri-sector.  However, Hon'ble Supreme Court Vide its order dated 12.01.2021 has stayed implementation of the Essential Commodities (Amendment) Act, 2020.

(d): In order to provide farmers remunerative prices for their produce, the Government has taken several steps:-

-  The Government undertakes procurement of Onions for the buffer directly from farmers at farm gate prices.
-  In order to promote creation of Scientific Storage infrastructure and  Marketing infrastructure  (other  than  Storage),  the  Ministry  of  Agriculture  &  Farmers Welfare,  Govt.  of  India  is  implementing  sub-scheme  'Agricultural  Marketing Infrastructure  (AMI)'  of  Integrated  Scheme  for  Agricultural  Marketing  (ISAM) across the country. The rural godowns enable small farmers to enhance their holding capacity in order to sell their produce at remunerative prices and avoid distress  sale.  AMI  is  demand  driven,  credit  linked,  back  ended  subsidy scheme. Subsidy support @ 25% and 33.33% is available for beneficiaries viz. Farmers, Individuals,  Agri-preneurs,  Farmer  Producer Organizations (FPOs), Cooperatives, state agencies etc.
-  Under Mission for Integrated Development of Horticulture (MIDH), a Centrally Sponsored scheme, several measures are being taken to augment the income of the farmers. Some of the steps may be seen as under:
-  Promoting  Post  Harvest  Management  through  Cold  storage  (CS),  cold chain supply  chain  including  pack  houses,  ripening  chamber,  reefer vehicle, etc.
-  Promoting Primary and minimal processing
-  Market Linkages: Market infrastructure such as mobile vending cart, retail outlet,  primary  and  wholesale  markets.  Creating  direct  market/farmers market.
-  Aggregating  farmers  into  Farmer  Producer  Organization  (FPO)/  Farmer Interest  Group  (FIG)  and  promoting  their  tie  up  with  Market  Aggregators (MAs) and Financial Institutions (FIs).
-  Under MIDH, assistance is also envisaged @ 50% of total cost of Rs. 1.75 Lakh per unit for low cost onion storage structure (25 MT).

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