- Directorate General of Foreign Trade, under the Ministry of Commerce and Industry, deals with exports and imports-related issues.
- The procurement target for onion buffer out of Rabi crop 2024 under the Price Stabilisation Fund (PSF) of the Department of Consumer Affairs has been fixed at 5 lakh tonnes this year.
Steps taken by the government to control the price of Onion
- On October 28, 2023, it imposed a minimum export price (MEP) of USD 800 per tonne on onion exports.
- In August, India imposed a 40 per cent export duty on onions until December 31, 2023.
- In October 2023, it decided to step up the sale of buffer onion stock at a subsidised rate of Rs 25 per kg in retail markets to relieve consumers.
Onions
- Onion is a temperate crop but can be grown under a wide range of climatic conditions.
- Onions are primarily grown through seeds, although bulb-to-bulb planting is also practised.
- Onions can be grown in all types of soil, including sandy loam, clay loam, silt loam, and heavy soils.
- India is the second-largest onion-growing country in the world.
- Major Onion producing states are Maharashtra, Karnataka, Madhya Pradesh, Gujarat, Bihar, Andhra Pradesh, Rajasthan, Haryana and Telangana.
- Maharashtra ranks first in Onion production.
- Indian onions have three crop cycles (Kharif, late Kharif, Rabi). Onions are more commonly associated with the Rabi season.
- Onion varieties: Red onions, white onions, yellow onions, shallot.
- White onions, being export-oriented, have higher production costs due to factors like expensive seeds, adherence to good agricultural practices, and strict residue limits.
Price Stabilization Fund (PSF)
- It was established in 2014-15 under the Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW). In 2016, it was transferred to the Department of Consumer Affairs (DOCA).
- The fund is centrally managed by a Price Stabilisation Fund Management Committee (PSFMC), which approves proposals from State Governments and Central Agencies.
- The Small Farmers Agribusiness Consortium (SFAC) maintains the PSF as a central corpus fund.
- It aims to regulate the price volatility of key agri-horticultural commodities such as onions, potatoes, and pulses.
- Besides domestic procurement from farmers & wholesale markets, the fund also supports imports.
- Under the PSF scheme, interest-free loans are provided to State Governments, Union Territories, and Central Agencies to cover their working capital and related expenses for procurement and distribution activities.
|