Despite the removal of export duties by the central government, India's onion exports have decreased by 11% this year, resulting in a price drop to $0.16 per kilogram. Recent financial data indicates a decline in onion exports, causing a foreign exchange loss exceeding $44.58 million compared to the previous year.
This year marks the first instance in five years where onion prices have decreased for three consecutive months, raising concerns among farmers. Bharat Dighole, President of the Maharashtra State Onion Producer Farmers' Association, attributes the price drop to government export policies. Initially, onions for the central government's buffer stock were acquired through NAFED, but the NCCF has recently shared this responsibility.
Allegations of corruption have surfaced against several farmer-producer companies and federations. Reports suggest these organizations purchased cheaper onions from traders and declared them at inflated prices under the buffer stock scheme, undermining the government's price stabilization efforts.
Experts caution that without prices covering production costs, farmers may cease onion cultivation. Dighole emphasizes the need for the central government to balance consumer price control with fair farmer returns.
Agricultural leaders advocate for a sustainable onion policy to shield farmers from financial difficulties and ensure consistent production and pricing in the future.
Source: Lokmat Times