Stabilisation fund for onion prices

To check volatility in onion prices, the food ministry has planned a stabilisation fund, on the lines of the Sugar Development Fund.

The idea is to help agencies such as the National Agricultural Cooperative Marketing Federation (Nafed) on price support operations in a more effective manner, to stop distress sales by farmers. The SDF also helps sugar millers undertake measures to improve production, storage and transportation of cane. Between September 17 and December 31, the inflation in onions moved from +17.04 per cent to -74.77 per cent. “It (the fund) will also help in development of modern storage facilities in onion growing regions,” food minister K V Thomas said.

He said the sudden and wide fluctuations in onion prices, which compel the government to intervene by imposing curbs on export, was neither in the interest of producers nor consumers.