Nafed to increase onion purchase by 3,400 tonne

Procures 1,600 tn in Maharashtra at Rs 300 a quintal

The National Agricultural Cooperative Marketing Federation of India (Nafed) has procured 1,600 tonne of onions at Rs 300 per quintal in Maharashtra as part of the government's plan to support farmers.

Nafed estimates procurement this season will be about 3,400 tonne more this season over last season.

"Out of the procured quantity, the federation has exported 600 tonne to Mauritius. We are looking at other destinations now," said Alok Ranjan, managing director.

Sources in the federation suggest that new orders from Malaysia are expected to be finalised soon.

Earlier this month, the government had asked Nafed to consider exports to neighbouring countries such Pakistan, Nepal, Bangladesh and Singapore to bail out farmers facing a steep price fall in the state.

At present, wholesale market price at Nashik is Rs 2.6 per kg compared with the normal Rs 4 per kg, while that at Azadpur (Delhi) is Rs 4 per kg against the normal Rs 5.5 a kg. Onion prices tend to be slightly lower in Maharashtra, the major onion producing state in the country.

The country exported about 7.75 lakh tonne onion in the last financial year, down from the previous year's 9.41 lakh tonne.

Due to the rabi crop damage, domestic prices had spiralled to Rs 28-30 a kg across the country in January and thus, the quantity which may have gone was exports was diverted to local markets to curb price rise.

Officials said that the commodity is part of the positive list of items identified by Pakistan for imports from India. While trade in positive items is not allowed through the land route, Pakistan had last year allowed India to import onions through Wagah and Attari.

Keen on evolving an onion policy, following the impact this perishable commodity can have political overtones in the country, the government had set up a taskforce under the leadership of the Additional Secretary (consumer affairs).

The taskforce is expected to submit its report soon, said a senior agriculture ministry official.

The taskforce is expected to work towards a scenario where shortage of onions can be avoided and look into various issues including production vis-à-vis demand, yield, storage, and procurement.

The government may even consider special warehousing for the commodity, considering its perishable nature, the official added.

India has three crops of onion in a year "� early kharif, late kharif and rabi. Total production in 2004-05 is estimated around 59.42 lakh tonne, up from last year's 57 lakh tonne.

The early kharif from Maharashtra arrived early October, the late kharif crop from Rajasthan came in early November while the late kharif from Gujarat is expected in early December and that of Maharashtra in end-December.

Rabi crop from Maharashtra and Rajasthan are expected around early March.