Flying squads to tackle onion hoarding in Maharashtra

Rising mismatch and spiralling prices triggered the govt move

The Maharashtra government has formed squads to take strict action against onion hoarders and speculators. The action comes in the wake of a mismatch between the demand and supply of onion and the subsequent rise in the prices.

Radhakrishna Vikhe-Patil, agriculture minister of Maharashtra, told Business Standard: “In view of the rise in sudden demand for onions in northern India, there has been deficit in the onion supply. This is a temporary phenomenon but still the government does not want to take any chance and, therefore, has set up flying squads to avoid hoarding and speculation, especially by farmers and traders in Mumbai and around.”

He conceded onion prices had surged. “The rise in onion price is for the time being. Onion prices in Nashik, Pune and Ahmednagar have increased to Rs 2,400 a quintal as on July 21, compared to Rs 1,500-1,800 a quintal during the corresponding period of last year. In the retail market, prices are in the range of Rs 32-35 per kg.

Arrival of onions in Nashik, which contributes 35-40 per cent to the state production, has been 83,000 quintals compared with 82,000 quintals last year.

Maharashtra’s onion crop estimate in 2012-13 was 4.7 million tonnes over 2.62 lakh hectares, according to the National Horticulture Research and Development Foundation. The onion-growing regions in the state include Nashik, Pune, Ahmednagar, Satara, Solapur and Pune.

Meanwhile, Ashok Walunj, director of Agricultural Produce Marketing Committee, said farmers should not be blamed for hoarding and speculation.

“Farmers, who are affected due to last year’s drought, are facing water logging in their fields due to heavy rains. They generally get onion crop in April-May after sowing in December. Practically, for June, July, and August, they have to struggle to sell their onions in the volatile market. Only after September do farmers go for fresh onion crop,” he added.