Onion price rise: Govt starts 5 lakh tons of onion procurement for RS 2,410/quintal

Union Commerce and Consumer Affairs Minister Piyush Goyal has said that the government has started the procurement of onion at Rs 2,410 per quintal in Maharashtra and Madhya Pradesh after increasing the quantum of onion buffer to five lakh tonnes this year. This to guard farmers' interest amid export curbs and to handle onion price rise.

Goyal further added that, the government has been selling them at Rs 25/KG in certain parts of the country. The government had also imposed a 40% tax on export in response to the sudden rise in prices. This invited wrath of farmers in Maharashtra who protested the tax burden and closed the wholesale onion auction at all APMCs in Maharashtra's Nashik.

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“On 17th August, two important decisions were taken, on the export 40% tax has been imposed. But along with this, NCCF and NAFED will buy 5 lakh tons of onions instead of 3 lakh, so that our farmers don't have any problems. Two lakh tons will be bought at ₹2410 per quintal," said Piyush Goyal.

Piyush Goyal has now assured the farmers that there is no need to worry and that they are valuable for the Government.

"NCCF and NAFED will sell onions at a subsidised rate of ₹25 kg for consumers in different regions. This subsidy will be provided by the government. This work started yesterday...Both consumers and farmers are valuable to us. Our food giver(farmers) gets a good price. I invite all the farmers to sell their onions at good prices and they don't need to worry about anything,"he said.