Food ministers' conference to discuss price stabilisation

Falling prices of onion in wholesale markets in Maharashtra, escalating prices of pulses, edible oil and sugar, and the need to take steps for price stabilisation will figure prominently at the states' food ministers conference here on Saturday.

The meeting, convened by Union Food Minister Ram Vilas Paswan, is expected to discuss specific action plans to strengthen the price monitoring mechanism and coordinated strategy to check hoarding of pulses, sugar and also onion in some states, in particular.

The Food Ministry has been specifically instructed by the Prime Minister's Office (PMO) to work in coordination with the states to improve the supply chain, and use the Price Stabilisation Fund to ensure easy availability of commodities, an official source told IANS here on Friday.

"The meeting will also take up agriculture sector reforms for marketing farmers produce," the source said.

In order to prevent prices of pulses from skyrocketing like last year, the Union Food Ministry has released substantial quantities of tur and urad from buffer stocks to be sold at subsidised rates.

Farmers from Nashik region in Maharashtra took to the streets on Thursday to protest against falling onion prices.

Kolhapur MP Raju Shetti of Swabhimani Shetkari Sanghatana (SSS), a constituent of BJP-led National Democratic Alliance (NDA), led the agitators.

Swabhimani Shetkari Sanghatana, the apex farmers' body in Kolhapur district, is demanding Minimum Support Price (MSP) for the commodity, an essential ingredient for major Indian dishes.

Earlier this month, Paswan admitted that onions "bring tears" either way -- high or low prices.

The Centre has procured 2,300 tonnes of onions directly from farmers this year so far to build buffer stocks.

The buffer stock of onion is being created using the Rs.900-crore Price Stabilisation Fund (PSF), sources said adding that procurement so far this year by the government was higher than last year's procurement.

The central government has allowed private purchase but remains cautious about hoarding.

While it has asked the states to be vigilant about hoarding by unscrupulous elements in states like Maharashtra, Gujarat, Rajasthan and Madhya Pradesh, the Union Food Ministry has said that the states should also come forward and buy the produce.

"The union government can provide support to such states and could pay up to 50 percent as assistance under the Price Stabilisation Fund," a source said.

Since early May, farmers, especially in Maharashtra, are virtually being forced to sell onions at a throwaway price of Rs.3 per kg due to bumper crop this year and absence of adequate procurement and lack of storage.

Raju Shetti has demanded that the government should immediately intervene and give incentives to onion growers and facilitate better exports.

The fluctuating Minimum Export Price (MEP) for onion often discourages export of the produce.

The government sources also admit that while wholesale prices have fallen considerably, there is a risk that improper management at this juncture could lead to huge destruction as well as hoarding of onion which could ultimately result in abnormally high prices by August.

"We want to avoid a situation like September-October 2013 when retail onion prices skyrocketed to about Rs.100 per kg after rains affected crops in Karnataka and Maharashtra," a top source in the Food Ministry told IANS.

--IANS

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