Cabinet takes onions off essentials' list

The government today lifted all trade restrictions on onions to ensure free supply and remunerative prices to farmers by removing the commodity from the purview of the Essential Commodities Act. It also approved a scheme to enable better marketing of agricultural produce.

"Removal of onions from the essential commodities list is in step with the government's policy of moving towards a more liberalised regime," Finance Minister P Chidambaram said after a meeting of the Union Cabinet.

He added the decision was prompted by the satisfactory production and availability of onion during the last five years.

The Cabinet also gave its nod to a scheme for construction and renovation of rural godowns.

Also cleared was a proposal to send 10,000 more Haj pilgrims from India this year. "We had applications for 82,000 Haj pilgrims and the Cabinet decided to clear all of them. The subsidy will be the same as paid last year," Minister for Parliamentary Affairs Ghulam Nabi Azad told reporters here.

The Cabinet Committee on Economic Affairs (CCEA) approved a central scheme for developing and strengthening agricultural marketing infrastructure at a cost of Rs 190 crore. The scheme is aimed at allowing direct marketing and contract farming and permitting the setting up of markets in the private and co-operative sectors.

The scheme will be implemented in those states that amend their Agriculture Produce Marketing Regulation (APMR) Act, wherever required.

The scheme includes a credit-linked subsidy at 25 per cent of the capital cost of the project to be provided for general or commodity-specific infrastructure for marketing of agricultural commodities.

For the northeastern states, hilly and tribal areas and scheduled caste and scheduled tribe entrepreneurs, the rate of subsidy would be 33.33 per cent, an official statement said.

The CCEA also approved a proposal for the construction and renovation of rural godowns at a total outlay of Rs 445 crore, of which the central outlay will be Rs 115 crore.

The scheme, to be implemented through the National Bank For Agriculture And Rural Development, National Co-operative Development Corporation and by the Directorate Of Marketing And Inspection, is part of the Tenth Five Year Plan.

"While an additional 3.2 million tonne capacity will be added, renovation will be carried out for godowns with a total capacity of 4.5 million tonnes," Chidambaram said.

The CCEA also cleared the Marine Fishing Policy, 2004, to raise the country's marine fish production to a sustainable level, ensure socio-economic security of fishermen whose livelihood solely depends on this vocation.