Nafed intervenes to stabilise markets as onion and potato prices plunge

Sharp drop in onion and potato prices since last few weeks have forced farmers to dump their produce in fields as selling price is far less than even cost of carrying produce to the market

Onion farmers in Maharashtra, which is one of the largest producers of the crop, are in distress, as are potato growers across the northern belt. The sharp drop in the prices of these two vegetables the past few weeks has forced them to dump their produce in the fields, as the selling price is much lower than even the cost of carrying the produce to the market.

In Maharashtra, opposition parties entered the state assembly with baskets of onions to protest against the sharp drop in prices. The plunge has been attributed to an increase in late kharif production this year, following higher acreage and better yields. Onion is harvested thrice a year. The kharif harvest starts from October-November, and is followed by late kharif in January and March and then by the rabi harvest between March and May.

Of all the three-time periods, rabi is the biggest onion crop and is also storable.
 

Meanwhile, under directions from the Central government, cooperative major the National Agricultural Cooperative Marketing Federation (Nafed) has started intervening in the market actively the last few days, and has purchased good quantities of onions from farmers to stabilise the markets. It is then transporting the purchased onions to consuming centres in Delhi and elsewhere to cool down prices.