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Maharashtra government has cracked the whip by forming special flying squads to take severe action against the hoarders and speculators to pave for smooth supply of onions in the market. The government has swung into action in the wake of present mismatch between the demand and supply of onion and the subsequent rise in the prices.
State agriculture minister Radhakrishna Vikhe-Patil told Business Standard "In view of rise in sudden demand for onions in the northern India there has been deficit in the onion supply. This is a temporary phenomenon but still the government does not want to take any chance and therefore has set up flying squads to avoid hoarding and speculation especially by farmers and traders in Mumbai and around."
He admitted that the onion prices have surged an thereby the local market has gone up. "The rise in onion price is for time being. Onion prices in Nashik Pune and Ahmednagar have increased to Rs 2,400 per ton as on July 21 compared to Rs 1,500-1,800 per ton during the corresponding period of last year. In the retail market the prices are in the range of Rs 32-35 per kg.
Arrival of onions in Nashik, which contributes 35-40% to the state production, has been 83,000 quintal against 82,000 quintal last year.
Maharashtra produces 1.2 million ton of onions annually on area spread over 1.75 lakh hectare. Incidentally, of which onion in Nashik is produced on 70,000 hectare. Other onion growing regions include Pune, Ahmednagar, Satara, Solapur and Pune.
Meanwhile, Ashok Walunj, director, Agricultural Produce Marketing Committee said farmers should not be blamed for hoarding and speculation. "Farmers, who are affected due to last year's drought, are facing water logging in their fields due to heavy rains. They generally get onion crop in April-May after sowing in December. Practically, for June, July and August they have to struggle to sell their onions in the volatile market. Only after September farmers go for fresh onion crop," he informed.
