Onion prices soar in Kerala; government to sell 100 tonnes at Rs 35 per kg

Thiruvananthapuram: The Kerala government has decided to procure 100 tonnes of onions through the National Cooperative Consumers' Federation (NCCF) and sell them at Rs 35 per kg as part of measures to bring down prices in the state, Agriculture Minister T Siddique said on Thursday.

Speaking at a press conference, Siddique said onion prices had risen sharply across the country, including in Kerala, prompting the government to take immediate measures to intervene in the market.

“In this special situation, we called a meeting of officials this morning along with the Food and Civil Supplies Minister and decided to take immediate measures to reduce the price of onions,” he said.

As an immediate step, the government has placed an order for 30 tonnes of onions through the NCCF. The produce is expected to reach the state and be made available in the market within three or four days.

The Agriculture Department's Horticorp and the Civil Supplies Corporation's Supplyco will jointly coordinate the distribution, Siddique said.

The minister said onion prices had increased at major production centres such as Nashik and Karnataka. He attributed the rise to reduced supplies from farmers and large quantities being purchased and stocked by wholesale traders.

“Wholesale traders have purchased and stocked large quantities of produce, while farmers in the production centres have not been supplying sufficient quantities to the market. These two factors have contributed to the increase in prices,” he said.

Siddique said the government had placed the order on Thursday itself and was taking steps to bring the onions to the state at the earliest.

“The government will not allow the market to be left to its own devices under any circumstances. Our firm position is that people should get better facilities,” he said.

He said the government had previously intervened in the vegetable market during the Onam season through around 2,000 markets across Kerala, with Horticorp and the Vegetable and Fruit Promotion Council Kerala (VFPCK) participating in the initiative.

“This helped control the vegetable market and prevent a major increase in prices,” Siddique said.

The minister noted that vegetable prices usually decline after Onam, but onion prices had remained high this time even at major production centres.

“Because of this situation, the government has had to adopt a conscious approach to bring down prices,” he said.

Siddique also assured that lack of funds would not stand in the way of the intervention.

“Money is not a barrier. Steps will be taken to make available as much produce as necessary in the market,” he said.

(PTI)