Business Standard

Special commodity markets for perishable commodities proposed

These commodity markets will be developed through state APMCs by providing special incentives and subsidies

Anindita Dey New Delhi
In order to develop the prospect of onion and other perishable commodities like vegetables in the domestic and international market, the ministry is proposing to set up special commodity markets with processing units for perishable vegetables. 

These commodity markets will be developed through the state APMCs by providing special incentives and subsidies by ministry of agriculture.

This discussion has taken placed between State of Maharashtra, Government of India and National Horticultural Research and Development Foundation (NHRDF) in the context of development of onion and garlic market.

Officials are of the view that depending only on raw onion production and its export without dwelling into value addition or processing is acting as a deterrent for the farmers and traders.

The whole business model remains dependent on the climatic conditions. If the perishable commodity could evolve into processed commodities it will be not only remunerative for the framers, traders but consumers both in India and abroad. It will have tremendous export potential as well without any seasonality attached to the commodity.

Besides, it has been proposed to suggest minimum support price for onions to the Commission for Agricultural Costs and Prices to check the losses born by the farmers and fixed export policy for onion.

The ministry may propose to the Directorate General of Foreign Trade (DGFT) to make onion export freely permissible by removing the requirement of canalizing agencies for exports . The export policy , according to officials, should refrain from banning of onion export from time to time, imposing MEP on onion export & changing it time to time etc .
 
On an experimental basis, this proposal of setting up of processing units for perishable commodities with the help of state APMCs could started for onion and then can be extended to other commodities like chilli, capsicum, garlic, etc.

In the discussion, the government of India has agreed to look into the possibility of subsidising setting up of processing units for processing perishable vegetables. The ministry is also emphasizing on the use of irradiation technology to increase the shelf life of perishable commodities, onion to begin with.

Irradiation is a process of exposing foodstuffs to a source of energy to preserve food to reduce the risk of food borne illness, prevent the spread of invasive pests, and delay or eliminate sprouting or ripening. The radiation can be emitted by a radioactive substance or generated electrically.

As per experts, irradiated food does not become radioactive and food irradiation is permitted by over 60 countries, with about 500,000 metric tons of foodstuffs annually processed worldwide. In India, the irradiation plant is available at Lasalgaon which could be utilized for the same.

In fact the ministry has also agreed to provide subsidy for large-scale demonstration at farmer’s field to be arranged at different places, so that losses in irradiated onions and without irradiated onions are compared. This project, according to officials could start in the coming late kharif and Rabi season.

Besides, subsidy can also be provided for construction of cold storages for onion. The use of processed onion in different forms can be highlighted so as to promote use of hybrid variety of onions and other perishable vegetables of various colour, uniformity, shape, size, good quality and yield. 

Besides, the use of processed onion in different forms by the common consumer is highlighted through different media so that in case of excess production or in the scarcity of onion it may help to onion producers and consumers.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Mar 23 2015 | 5:40 PM IST

Explore News