NAFED Confident of Meeting Onion Procurement Target Amid Farmer Demand for Better Rates
Struggles to Achieve 10% of Target
The National Agricultural Cooperative Marketing Federation of India (NAFED) has faced significant challenges in meeting its onion procurement target for buffer stock aimed at price stabilization. Despite the goal to procure five lakh tonnes of onions, the agency has managed less than 10% of this target. This shortfall is attributed to the government offering lower rates compared to market prices, leading farmers to sell their produce in the open market instead.Current Market Prices More Attractive
Farmers have been reluctant to engage with procurement agencies due to the higher prices offered in the market. Bharat Dighole, President of the Maharashtra State Onion Growers’ Association, highlighted that the modal price of onions in Lasalgaon stands at $0,32 per kg. He emphasized that for farmers to prefer selling to government agencies, the rates must be competitive. The government has recently started offering $0,31 per kg to encourage farmers to sell their produce to procurement agencies.Collaboration and Technological Solutions
To achieve the procurement target under the Price Stabilization Fund (PSF), NAFED and the National Cooperative Consumers’ Federation (NCCF) are collaborating with local agencies such as FPOs, FPCs, and PACs. They are facilitating the procurement, storage, and registration of farmers for storable onions. A high-level team from the Department of Consumer Affairs (DoCA), NCCF, and NAFED has also visited Nashik and Ahmednagar districts to raise awareness among farmers and local organizations about the procurement process.Additionally, the Department of Consumer Affairs is increasing the quantity of onions to be irradiated and cold-stored from 1,200 tonnes last year to over 5,000 tonnes this year. This initiative, supported by the Bhabha Atomic Research Centre (BARC) in Mumbai, aims to minimize storage losses, which have been reduced to less than 10% through the pilot project on onion irradiation and cold storage.
Despite current challenges, NAFED remains hopeful of meeting its five lakh tonne procurement target by offering competitive rates and implementing advanced storage solutions. However, ongoing efforts are crucial to ensure that farmers receive fair prices and the market remains stable.
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