Agriculture Minister Sharad Pawar on Saturday hoped that fresh arrivals from Gujarat, Uttar Pradesh and Rajasthan would lower onion prices.
“Maharashtra accounts for nearly 40 per cent onion production in the country, but supplies also come from states like Rajasthan, Gujarat and Uttar Pradesh. But these come at different months. Now that the fresh crop is ready in the fields and expected to reach the market any time, we are hoping that the situation will change soon. There should be an improvement in prices,” Pawar said.
He said prices of vegetables, including that of onion, were under control around a month back, but due to unseasonal rain in various parts of the country that affected crops across states, there was a temporary crisis. “We have already banned exports and have started to importing onions. Things hould improve further once the fresh crop arrives,” he said.
The minister also dismissed reports that Prime Minister Manmohan Singh had demanded a report from his ministry on the sharp rise in onion prices in the last few days.
Singh yesterday met Pawar, along with other leaders from Maharashtra, to apprise him of the situation. Singh also announced a Rs 400-crore relief package for Maharashtra farmers affected by untimely rain.
Unseasonal rain in the last two months, a time to harvest the crops sown in summer, caused severe damage to onion in major producing states, including Maharashtra, Gujarat, Andhra Pradesh and Karnataka. Average onion prices at the country's largest wholesale onion trading hub in Lasalgaon, in western Maharashtra, jumped to Rs 3,800 per 100 kg on December 20, a 346 per cent rise within 20 days.
Meanwhile, batting for sugar futures that would resume from Monday, Pawar said, “We have to take note of the interests of exporters. To enthuse farmers to produce, we have to ensure good prices. Not that we are not concerned about the potential price rise affecting consumers. One has to balance the situation.” The trading was banned to check prices.
