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Deficit of 1.5 million tonne led to onion price rise: Centre
Onion prices have more than trebled in some parts due to a supply crunch. All-India average retail prices of onion ranged between Rs 90-110 per kg on Thursday, data from the government’s price monitoring cell showed.
Agriculture minister Narendra Singh Tomar on Thursday told the Lok Sabha that a shortfall of 1.58 million tonne in onion production was the main reason for a spike in its prices across several parts of the country.
Addressing a debate on crop losses and its impact on farmers due to extreme rainfall in August-September, the minister said states had given a production estimate of nearly 6.99 million tonne of onion by November 30 during the summer season, but the actual production was likely to be 5.36 million tonnes.
“There is definitely a shortage of onions...The current problem [price rise] is due to this. And this is natural. Our government has taken several measures, including banning its export and allowing import,” he said.
Trinamool Congress MP Kalyan Banerjee asked the minister if he ate onions. “Yes, I do,” said Tomar. To this, Banerjee said: “Then you belong to our group.”
Onion prices have more than trebled in some parts due to a supply crunch. All-India average retail prices of onion ranged between Rs 90-110 per kg on Thursday, data from the government’s price monitoring cell showed. In May, average retail prices were between Rs 20-25 for a kg.
Overall retail inflation rose to their highest in nearly three years in November, official data released on Thursday showed. Consumer Price Index inflation spiked to 5.54% in November, compared to a 4.62% rise in October, according to the data.
The data showed that retail food inflation surged 10% in November compared to a 7.89% increase in the previous month. Vegetable prices alone increased 36% from the corresponding period last year.
Tomar said climate change did pose a risk to the country’s farming community. The government’s flagship programme on climate resilient agriculture were developing proven strategies, including new crop varieties, to deal with climate impacts, he said.
Over 40.2 million farmers are receiving real-time weather information through mobile text messages under a government programme, he said.
Tomar said the performance of the Pradhan Mantri Fasal Bima Yojna, the government’s flagship farm insurance scheme, had been satisfactory but work was to fine-tune it and cut delays in payments. “Over 80% claims made under the scheme have been accepted,” he said.
Adhir Ranjan Chowdhury, the leader of the Congress in Lok Sabha, said the government was working for traders not farmers. “Poverty has doubled under the BJP-led NDA government,” he said.
