Maharashtra Minister of Marketing Jaykumar Rawal has said NAFED should work in close coordination with his department while taking decisions on onion stocks, as independent moves could affect both farmers and consumers, reported news agency PTI.
After the cabinet meeting on Tuesday, Rawal told reporters that the state has produced nearly 170 lakh metric tonnes of onion this year, around 55 lakh metric tonnes more than last year.
The National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) had earlier indicated it would release stored onions into the market if prices went above Rs 30 per kg, he said, reported PTI.
“This led to a sudden fall in prices as traders reacted to the announcement. Farmers faced losses and we have therefore told NAFED that such decisions need to be taken in consultation with the state,” the minister said, reported PTI.
The Centre has been informed that timely export support would help stabilise prices and prevent further distress for growers, he said.
Rawal also mentioned that a proposal seeking additional export subsidy has been prepared by the marketing department and will be sent to the Union government. “This will encourage exports and help balance the market,” he said, reported PTI.
On the issue of traders, Rawal said some had taken undue advantage of rumours about NAFED`s market operations.
“We have asked market committees to monitor such practices and to act against those who intentionally depress prices. Licenses of errant traders may be cancelled if needed,” he added, reported PTI.
Earlier, Maharashtra Marketing Minister Jaykumar Rawal on Tuesday said Chief Minister Devendra Fadnavis has urged the Centre to double the subsidy on onion exports to ensure stable market prices and benefit cultivators in the state, reported PTI.
Speaking to reporters after a review meeting at Mantralaya, the minister said that onion production in the state has increased by 55 lakh metric tonnes this year.
“Given the current situation, it is necessary to promote exports and take other measures. The Centre has responded positively to the state`s request for doubling the export subsidy,” he said, reported PTI.
Agriculture Minister Dattatray Bharne, Agricultural Prices Commission chief Pasha Patel, senior legislators and officials of NAFED and NCCF attended the review meeting.
Maharashtra is a major producer of the kitchen staple. Lasalgaon in Nashik district has the largest onion market. The Lasalgaon onion market rate serves as a benchmark, influencing onion prices across the Asian market, reported PTI.
Onions receive a certain percentage of subsidy from the Centre, which the state has demanded be doubled to make exports competitive in international markets, thereby supporting domestic prices.
(With inputs from PTI)
