Committee recommends e-auction of onion in Maha market committees

Sunil Pawar Committee suggests e-auctions for onions to prevent bargain prices, mixed reaction from traders and farmers. e-NAM transactions in 118 market committees ongoing.

While the Sunil Pawar Committee constituted to study the onion issue in the state has recommended starting e-auctions of onion in all market committees to avoid the sale of onion at bargain price and to get competitive prices, the onion traders’ and farmers’ reaction to the recommendation is a mixed bag.

As farmers do not have storage facilities, they sell the onion rather than let it rot. (HT PHOTO)

During the onion harvesting season, market committees in the onion growing belt face a huge influx. As farmers do not have storage facilities, they sell the onion rather than let it rot. Traders too take advantage of the situation where inflows have increased compared to demand. The e-auction or e-NAM scheme will come in handy in such a situation. e-NAM transactions have already started in 118 market committees of the state.

Other market committees, too, should carry out onion buying and selling transactions under the e-NAM scheme so that due to increase in demand from other parts of the country, onion rates become competitive or remain stable. Moreover, e-NAM will make the auction process transparent with coordination between the farmers and traders. The committee has also recommended that the amount be deposited directly into the bank account/s of the farmers.

Following the Covid-19 pandemic, onion exports had come under a cloud. Traders are afraid due to the poor economic conditions of Sri Lanka and Nepal. The committee has also recommended that financial transactions with neighbouring and friendly countries be carried out in rupees. “The central government should allow the export of onion to neighbouring countries at least during the onion harvesting season in the state and mainly during the period when onion is not suitable for storage,” the committee report stated.