Lok Sabha Question No. 905 (UNSTARRED), answered on 2016-03-01
Subject: Decline in Onion Production
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: V. PANNEER SELVAM, RITI PATHAK, PREM SINGH CHANDUMAJRA, BHOLA SINGH

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

## LOK  SABHA UNSTARRED QUESTION NO.905

TO BE ANSWERED ON THE  1 ST  MARCH, 2016

## DECLINE IN ONION PRODUCTION

905.   SHRI V. PANNEERSELVAM: SHRIMATI RITI PATHAK: SHRI PREM SINGH CHANDUMAJRA: SHRI BHOLA SINGH:

Will the Minister of AGRICULTURE AND FARMERS WELFARE ‡ãðŠãäÓã एवं किसान िल्याण ½ãâ¨ããè be pleased to state:

- (a) whether  the  production  of  onion  has  declined  in  various  States  of  the  country during  the  current  season  as  compared  to  the  last  season  due  to  untimely  and excessive rains, if so, the details thereof;
- (b) whether the  Government has decided  to  remove  the  Minimum Export  Price  of Onion and if so, the details thereof and the reasons therefor;
- (c) whether the Government has assessed the impact of the said move on its prices in the domestic market and if so, the outcome thereof; and
- (d) the  steps  taken  by  the  Government  to  promote  the  production  and  storage  of onion in the country and ensure adequate availability of onion at nominal prices in the domestic market?

## ANSWER

MINISTER OF  STATE IN THE  MINISTRY OF  AGRICULTURE AND  FARMERS  WELFARE

‡ãðŠãäÓã एवं किसान िल्याण ½ãâ¨ããÊã¾ã ½ãñâ Àã·¾ã ½ãâ¨ããè ( SHRI MOHANBHAI KUNDARIYA

(a): No,  Madam.  Despite  drought  during  the  current  year  and  excessive  rains  in  the Southern states, the onion production during the current agriculture year 2015-16  is expected to be higher as compared to the previous year 2014-15.  The details of onion production in the country during the last two years and current year are as under:

| Year                    |   Production (In Lakh Tonnes) |
|-------------------------|-------------------------------|
| 2013-14                 |                        194.02 |
| 2014-15                 |                        189.27 |
| 2015-16 (1st Adv. Est.) |                        203.33 |

(b): In  view  of  the  fall  in  onion  prices,  the  Government  has  removed  the  Minimum Export  Price  (MEP)  on  onion  vide  notification  No.  29/2015-20  dated  24th  December, 2015.

(c): The removal of  MEP on onion did  not  affect  the  price  of  onion  adversely  and prices have shown decline trend due to higher availability from fresh arrivals.

(d): Assistance  is  being  provided  by  the  Government  under  the  scheme,  namely, Mission for Integrated Development of Horticulture (MIDH) for holistic development of horticulture sector  in  the  country  which  includes  assistance  for  improvement  in production and productivity as well as development of Post harvest Management (PHM) and  Marketing  infrastructure,  for  perishable  crops  including  Onion.  This  is  to  ensure adequate availability of fruits and vegetables including onions at nominal prices in the domestic market.

The  PHM  includes  providing  assistance  for  cold  storages  and  low  cost  onion storage structures. The component of Market Infrastructure includes retail outlets, rural primary markets, wholesale markets, terminal market complexes and e-markets.

-  Under this  MIDH  scheme  assistance  is  being  provided  by  the  Government  for setting up of Low Cost Onion Storage Structures (maximum capacity of 25 MT) for a cost norm of Rs. 1.75 lakh/unit with provision of 50% subsidy.
-  For  retail  outlet,  credit  linked  back  ended  subsidy  @  35%  of  capital  cost  in general  areas  and  @  50%  in  hilly  and  scheduled  areas  for  maximum  cost  of Rs.15.00 lakh/unit is available.
-  For rural primary markets, credit linked back ended subsidy @ 40% in general areas  and  @  55%  in  hilly  and  tribal  areas  of  the  maximum  project  cost  of Rs.25.00 lakh is available.
-  For  wholesale  markets,  credit  linked  back  ended  subsidy  @  25%  in  general areas  and  @  33.33%  in  hilly  and  tribal  areas  of  the  maximum  project  cost  of Rs.100.00 lakh is available.
-  For  terminal  market  complex,  under  PPP  mode,  assistance  @  25%  to  40% (limited  to  Rs.  50.00  crore)  of  project  cost  of  Rs.150.00  crore,  which  includes 25% as floor subsidy plus 15% as subsidy on bidding is available.

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