Business Standard

Maha govt asks farmers to release 600,000 tonne of onions to stabilise price

Onion prices have touched Rs 80 a kg in the Maharashtra market

Sanjay Jog Mumbai
Amid rising onion prices in the retail market, the Maharashtra government on Wednesday asked growers to immediately release 5.50 lakh to 6 lakh tonnes onion in the market. Onions are currently stored by onion growers in various storages. The government hopes that the availability of additional quantity will help stabilize price and also avoid any move to ban exports.
 
The decision in this regard was taken at the meeting convened by the state agriculture minister Radhkrisha Vikhe-Patil with the officials from his department . The government's move comes close on the heels of onion prices surged to Rs 70 per kg in the retail market. 
 
 
Maharashtra State Agricultural Marketing Board official, who was present at the meeting, told Business Standard ''At present, onion growers are earning Rs 4,500 per quintal against the cost of production of Rs 800-900 per quintal. However, the government has asked the Maharashtra State Agricultural Marketing Board to appeal to the farmers to release 5.50 lakh to 6 lakh ton of onion currently in storages.'' Besides, the government will also bring to the farmers' notice that if the onions continue to remain in storages there are all chances that they may be spoiled.
 
Further, the official said the onion from the current kharif season will come to the market from September 15. He informed that the government launched 106 fair price shops in Mumbai and around are selling onion at Rs 43 per kg.
 
Moreover, the government also decided to deal firmly against the speculators and hoarders.
 
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.
 

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First Published: Aug 14 2013 | 1:11 PM IST

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