‘Frame policy on onion prices’: Mahuva APMC chairman to PM

”Over the last two decades, there has been an unusual increase and decrease in onion prices, which affected onion producing farmers and consumers alike. On an average, every three years the price of onions either increases greatly or falls as if there is no bottom due to which the farmers have to endure (sic) a lot,” Patel’s letter read.

“In order to limit or control this increase or decrease of price…, it is necessary to formulate a definite onion policy which maintain fair prices on the basis of supply and demand for both the farmers and also the general public,” the letter further read.

The high volatility can be addressed by shifting transportation on railroads from roads and by promoting exports, Patel suggested.

“Transporting 20 kilogrammes of onion from Mahuva to Siliguri costs Rs 120 whereas the farmers would have realised only Rs 60 while selling the same onion in APMC. The railway freight on the other hand is average Rs 60 but the Indian railways doesn’t make enough wagons available on demand,” Patel told The Indian Express, adding, “Therefore, traders are offering low prices to farmers keeping high transportation charges in mind. If the government helps shiting the transportation of onions on railroads, that will eventually help farmers get remunerative price and make onion available to consumers at reasonable rates.”

Mahuva APMC is among the biggest wholesale markets of onions in Gujarat. Currently, prices of red onion is ruling the range of Rs 150 to Rs 300 per 20 kg and that of white onion in the range of Rs 150 to Rs 200.

He also suggested that the government can think of giving subsidies on freight charges to keep onion prices in check.

“Secondly, onion sown in Kharif and harvested during winter has shelf life of 15 to 20 days only, forcing farmers to sell even at throwaway prices. At the same time, traders have also to dispose of their stock immediately and in such circumstances, if the overseas market is not tapped, it leads to a supply-side glut in the domestic market, hurting farmers. Therefore, it is important that the government allow and actively encourage, even incentivise exports of onion during January-April period,” Patel further said.

Patel had also copied his letter to Parsottam Rupala, Union Minister for Fisheries, Animal Husbandry and Dairying.

Rupala, who is a native of Amreli district, has in turn, written to Union Agriculture and Farmers Welfare Minister Narendra Singh Tomar. “I am forwarding a request received from Shri Ghanshyambhai Patel, chairman, APMC, Mah-uva (Gujarat) regarding framing of “Onion Policy” to control the abnormal fluctuation of the prices of Indian onion and also various measures suggested to control the prices of onion, which self-explanatory. I shall be grateful, if you could kindly look into the matter personally and take appropriate action,” Rupala wrote in his letter to Tomar on March 10.