Onion Glut, Farmers Demand Policy for Price

Following a glut in production, onion producers in Mahuva, Bhavnagar, one of the top producers of this vegetable, have shot a letter to Prime Minister Narendra Modi requesting a dedicated policy for the bulb, following a glut in production. 

Mahuva Marketing Yard, India's largest platform for white onion auction and second-largest platform for red onion auction, delivered the letter. 

The districts of Bhavnagar and Amreli are the biggest producers of white onion and red onion, respectively, and there has been a significant crop of the latter in this region. However, onion prices fluctuate often, ranging from Rs.5 to Rs.50 per kg in the wholesale market. 

In his letter to the Prime Minister, Ghanshyam Patel, chairman of APMC Mahuva, stated, "Over the last two decades, there has been an exceptional spike and reduction in onion prices.  Every three years, on average, the price of onions either skyrockets or plummets as if there is no bottom.

To prevent price fluctuations, a defined onion policy that ensures fair prices based on supply and demand for both farmers and consumers is required." 

Patel said "When prices fall, farmers suffer tremendous losses hence the policy should be structured in such a manner that they receive appropriate prices and are not discouraged from cultivating." During times of scarcity, consumers are not compelled to pay exorbitant prices." 

The producers have recommended forming an expert committee comprised of government officials, farmers, and leaders from onion-growing states to develop production policies such as quality seeds, export policy, storage, and processing. The APMC recommended that the government guarantee farmers receive quality seeds and that seed export be prohibited in order to maintain purity. 

The committee suggested that the exports should be regularized, which can give maximum benefits to the farmers, but ensuring that the consumers don’t need to pay high prices due to export. They have also asked for subsidies in the railway for transportation of onions and farmers get better storage facilities for onions.