Facing farmer protests, Centre goes in for ‘historic’ onion procurement

Announcing that procurement centres had opened on Tuesday, Goyal also said that the decision to impose the export duty and make the extra procurement was taken on the same day, August 17.

Addressing a press conference, with Maharashtra Agriculture Minister Dhanajaya Munde beside him, he said: “On August 17, two important decisions were taken. First, a duty of 40% was imposed on onion exports, and second that the NCCF and the NAFED will procure 2 lakh tonne additional onions this year… Our aim is to ensure that farmers get a good price.”

Goyal said the NCCF and NAFED will sell the procured onions at a subsidized rate of Rs 25 per kg. “Farmers and consumers are both priceless for us,” he said.

The Centre imposed the export duty soon after onion prices rose sharply from Rs 30-35 per kg to Rs 45-60 per kg, which came on top of the already high tomato prices.

Asked about farmers’ protests in Maharashtra, Goyal hinted at the concern in the government, saying he had been in “continuous dialogue” with the state. “Deputy Chief Minister Devendra Fadnavis has been on call from 6 o’clock in the morning from Japan (he is on a visit there)… Maharashtra Agriculture Minister Dhananjay Munde and other colleagues have come in from the state. Bharati Pawar, Minister of State for Health (who belongs to Nashik), has been in touch with me for the last three days.”

Goyal added: “I think some elements have been trying to present a wrong picture, create panic… I want to assure the people of Maharashtra, Madhya Pradesh and any other region where onions are grown, that they need not worry… They will get the right price for their produce.”

Asked who these “elements” were, Goyal did not name anyone, but said: “The people who oppose politically are everywhere. They do politics in everything. The interest of the country and of the farmers is not necessary for them.”

Before the Centre announced the fresh procurement, the Maharashtra government is believed to have conveyed to it that antagonising farmers in the country’s biggest onion-producing state would prove detrimental. Munde spoke to farmers’ delegations and assured them help before meeting Goyal in Delhi.

Around 20 procurement centres have been opened in Maharashtra now, and one in Shahpur, near Narsinghpur in Madhya Pradesh.

On the rationale behind the 40% duty, Goyal said the export rate of onions is “$320 today (about Rs 26 per kg)”. “If we subtract the transportation cost and other expenses from it and see what does a farmer actually get, then we see that the farmer gets a price of Rs 18-19 per kg. In a way, we are benefiting farmers in a big way (by procuring their produce at around Rs 24 per kg).”

On the new procurement price, Goyal said, “We are buying at the rate of Rs 2,410 per quintal. This is historic. Farmers have never got this price. We are ready to procure from Maharashtra, Madhya Pradesh and any other state.”

In the past one year, NAFED has procured onions at an average price of Rs 1,470-1,713 per quintal, said an official.

India is the second-largest onion-growing country in the world, with Maharashtra accounting for 42% of the produce. The other onion-producing states are Madhya Pradesh, Karnataka, Gujarat, Bihar, Andhra Pradesh, Rajasthan, Haryana and Telangana.

Last year, India’s onion production stood at 318 lakh tonnes.

Following the export duty order, the Nashik Onion Traders’ Association had announced indefinite shutdown of the auction of onions at all APMCs. Several farmers’ organisations also took to the streets in Nashik and Ahmednagar districts.

Opposition leaders in the state had attacked the BJP. Maharashtra Congress president Nana Patole said, “The BJP has always overlooked farmers’ issues. For them, winning elections is the only criterion. The export duty decision has been taken ahead of the Assembly elections in several states.”

Among those who criticised the export duty decision was BJP ally Rayat Kranti Sanghatana, a farm outfit led by former minister Sadabhau Khot. Its Nashik head threatened to start a tractor rally to Mumbai if the government did not withdraw the decision in two days.

Swabhimani Shetkari Sanghatana, a farm union led by former MP Raju Shetti, approached NCP chief Sharad Pawar on the issue. Pawar promised to raise the matter at the upcoming meeting of INDIA bloc in Mumbai on September 1.

Goyal gave the example of last year to underline the government’s good intentions. “Last year, when onion prices were low, the government increased the buffer from 2 lakh to 3 lakh tonnes, and NCCF and NAFED procured a big quantity… This year, we have already procured 3 lakh tonnes of onions.”

Asked about the tomato prices, Goyal said: “Our intervention on tomatoes was very successful… due to which tomato prices came down significantly… Consumers were given tomatoes first at Rs 90 per kg, then at Rs 70, Rs 60 and finally at Rs 40 per kg.”

According to data available on the Department of Consumer Affairs website, the all-India daily average retail price of tomato is Rs 78 per kg.