Badal feels onion prices follow a cyclical pattern and rise during monsoons, and therefore, consumers can be saved from high prices through large-scale processing of this perishable commodity.
Wholesale prices of onion, which is widely used in Indian households, have risen to close to Rs 60 per kg while it is already selling around Rs 80 per kg in retail markets.
The idea comes at a time when prices of onions have risen unabated in the past few weeks. Wholesale onion prices touched Rs 57 per kg at Lasalgaon in Maharashtra, Asia's biggest onion market, which could further spike retail prices in coming days.
"Processing can help in mitigating the impact of the price rise in vegetables like onions and others," the Minister said, while adding that the processed products can be provided at reasonable prices.
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She further said the Food Processing Ministry is working on ways to make small food park projects more feasible.
"We are working on making small food parks more feasible. So, in areas where onions are produced, small processing units can be set up. For that, a company doesn't need 50 acres," Badal said.
The government may also provide subsidy of Rs 1 crore per acre, she added.
CIPHET also provides training to farmers and entrepreneurs in converting onions into dried form and also in the form of flakes and powder.