The two Telugu states, Andhra Pradesh and Telangana, along with Delhi, have approached the Union agriculture ministry, with the proposals to avail the subsidy onions for themselves, and thus make it available for the common public at the reasonable rates.

The centre recently sent the reminders to all the state governments, to come forward and use the subsidy onions, available under the price stabilization fund and thus avoiding the middlemen, who are selling the onions for more prices.

Pressure on supply of onions!

Speaking to the media, an agriculture ministry official said, "After repeated reminders some states have approached the Centre, we had anticipated way back in February that there may be some pressure on supplies between July and September. Why were the states sleeping and not taking any step to bring down prices?"

Only the central agencies Nafed and Small Farmers Agri-Business Consortium (SFAC) have taken interest free advance of Rs 8.75 crore and Rs 7.94 crore, till date, under the fund to procure onions. 

Speaking about this, an official said, “last year, the onions price remained stable at Rs 40-45 per kg and the raids of the hoarders, had made an impact. But this has not been taken place this year. The average wholesale price was Rs. 48.76 per kg and retail price was Rs 56.26 a kg on Wednesday.       

The Delhi government procured 2,511 tonnes of onions from the SFAC, has sought Rs 7.50 crore from the ministry. On the other hand, the Telangana government procured 5,000 tonnes of onion, at a cost of Rs 18.31 crore, in which the centre's contribution is Rs 9.15 crore.

Along with this, other proposals like Rs.56 crores subsidy to procure potatoes and onions in Andhra Pradesh, is expected to be cleared shortly.

By Phanindra