Lok Sabha Question No. 2711 (UNSTARRED), answered on 2016-05-10
Subject: Decline in Onion Prices
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: NAGENDRA KUMAR PRADHAN, Shrirang Appa Barne, SHRIKANT EKNATH SHINDE, ANANDRAO  ADSUL, SHER SINGH GHUBAYA, DHARMENDRA YADAV, ARJUNLAL MEENA, SHIVAJI ADHALRAO PATIL

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

## LOK  SABHA UNSTARRED QUESTION NO.2711

TO BE ANSWERED ON THE 10 TH   MAY, 2016

## DECLINE IN ONION PRICES

2711.      SHRI NAGENDRA KUMAR PRADHAN: SHRI SHRIRANG APPA BARNE: DR. SHRIKANT EKNATH SHINDE: SHRI ANANDRAO ADSUL: SHRI SHER SINGH GHUBAYA: SHRI DHARMENDRA YADAV: SHRI ARJUN LAL MEENA: SHRI ADHALRAO PATIL SHIVAJIRAO:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ षि एवं ककसान कल्याण मंत्री be pleased to state:

- (a) whether  prices of onion have declined drastically in the markets even to 30 paisa per kilo which compelled the farmers to throw away their produce, if so, the details thereof alongwith the reasons therefor;
- (b) 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;
- (c) whether  the  Government  also  proposes  to  allow  export  of  onion  for  better  price realisation, if so, the details thereof;

(d) the  steps  taken  by  the  Government  to  regulate  onion  market  to  avoid/prevent  steep fluctuation in onion prices; and

- (e) the various other steps taken by the Government to provide remunerative price for onion in order to save farmers from the burden of debt?

## ANSWER

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

कृ षि एवं ककसान कल्याण मंत्राऱय में राज्य मंत्री (SHRI MOHANBHAI KUNDARIYA)

- (a): Prices of onion vary by variety, grade and location of market.  The average modal prices from  mid  April  to  1 st week  of  May,  2016  are  around  Rs.900/qtls  in  U.P.,  Rs.600-800/qtls  in Rajasthan,  Rs.800/qtls  in  Punjab,  Rs.500-600/qtls  in  Karnataka,  Rs.450-550/qtls  in  Gujarat, Rs.300-500/qtls in M.P., Rs.650-800/qtls in Maharashtra, Rs.360-500/qtls in A.P. and Rs.1000/qtls in Bihar.
- (b): Government  is  procuring  onion  through  Small  Farmers  Agri-Business  Consortium (SFAC)   and   National   Agricultural   Cooperative   Federation   of   India (NAFED) under Price

Stabilization Fund (PSF), directly from farmers, to build a buffer stock for supply during the lean season.

(c): There is no restriction on export of onion.

(d) & (e): 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  loss  with  the Central Government on 50:50 basis (75:25 in case of North Eastern States).

In addition, Government has taken steps toward market reform for agricultural produce. States/UTs have been advised to amend their respective State APMC Acts.  Government has launched the e-National Agricultural Market (eNAM) a pilot project on e-trading platform for the National Agricultural Market in 21 mandis from 8 states for 25 commodities, including onion to ensure better price discovery for agriculture produce.

********