State takes stern steps to check onion prices

NASHIK, JULY 16: Sensing spurt in onion prices on the eve of polls, the State Government has ordered all divisional commissioners, distri...

NASHIK, JULY 16: Sensing spurt in onion prices on the eve of polls, the State Government has ordered all divisional commissioners, district collectorates and district supplies officers to keep an eye on storage, arrivals and trade of the crop.

In a circular issued by Food and Civil Supplies and Consumer Protection Department of the State, officials have been told that though onion production this year was estimated to be 20 per cent more than previous year, there was a likelihood of the kharif crop under cultivation being damaged by adverse weather conditions, leading to skyrocketing of prices like last year.

The circular has stated that inclement weather, especially during August and September, in balance of adequate buffer stock, might lead to rise in prices. Hence, officials have been asked to keep strict vigil on farmers and traders to prevent hoarding. The government wishes to ensure that the situation which prevailed in 1997-98, when kharif crop failure led to skyrocketing of onion prices, will not be repeated this year.

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The circular, received in the district collectorate on July 13, has not specifically asked officials to build up a buffer stock or imposed a ceiling on storage of onions by farmers and traders, but has given hints to officials to be ready for a possible crackdown. The central government on the other hand has included onions in the list of essential commodities. The ordinance is yet to reach district officials.

Incidentally, after last year’s record onion prices, upto Rs 40 per kilo in wholesale markets, this year, farmers have stored the rabi crop (which has a shelf life of up to six months, unlike the monsoon crop which decays within a fortnight) and are waiting for the prices to improve, to make a fast buck. The prices have stabilised in the range of Rs 4 to Rs 5 per kilo in wholesale markets.

The next crop, which is under cultivation is due for harvesting around September-October. The government apprehends that excess rains or adverse weather conditions (like cloudy weather, which affects the bulb development) would send signals to the market of a failure of crop and prices would soar. Incidentally, onions require clear sunshine after the bulbs start developing and cloudy weather or rains leads to diseases and stunting of bulb growth.

Since the crucial period in onion growth conincides with the ensuing polls, the government has asked its officials to maintain vigil.

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The total onion production in the country in 1997-98 had declined from the normal of 44 lakh tonne to 36 lakh tonne. In Maharashtra, the production had fallen from the usual 12.5 lakh tonne per annum to 9.5 lakh tonne. For 1998-99 the government agencies have estimated that the total production of onion in the country would be around 47 lakh tonne.