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Concerned over rise in onion prices, the Andhra Pradesh government is mulling creation of a Rs 100 crore market intervention fund for controlling vegetable prices, including Rs 20 crore exclusively for onions, a senior government official said here today.
G Venkatram Reddy, Commissioner and Director, Agriculture Marketing Department, said the prices of onion in the state have gone up by nearly 50% during the past one month due to a variety of reasons, including low arrivals from Maharashtra.
"It is impossible to bring down the prices of onions to July levels. It was decided to create market intervention fund to stabilise commodity prices. It was proposed to have Rs 100 crore for all commodities. And in that, Rs 20 crore for onions," Reddy told PTI.
Prices of onion rose by at least 50% in the past one month. It was hovering around Rs 20 to 22 during the last week of July and currently sells at Rs 35 in Hyderabad.
The government has also constituted a four-member committee to oversee the fund management in regulating the prices, Reddy said.
Commissioners of Civil Supplies and Marketing and Managing Director of Markfed and CEO Rythubazars are the members of the committee.
Reduced acreage in Maharashtra has also impacted the prices of onion, he said.
According to Rythubazar website, the onion price varied from Rs 25 to Rs 55 during the current month touching even Rs 60 at one point of time.
Reddy also said the fund is aimed at intervening the market when commodity prices are high.
The prices will be reduced when the market is down.
