After sugar, now it’s the turn of the onion, which is also grown mostly in agriculture minister Sharad Pawar’s home state Maharashtra, to get special attention of the Union government, as it has indicated setting up of a special fund for onion on the lines of Sugar Development Fund (SDF).
Informing about the policy move, food minister K.V. Thomas said, the fund will be created on the lines of sugar development fund and will be used for containing steep fluctuations in the prices of onion in the country. The fund, which will be jointly operated by food and agriculture ministries, will also be used to create supply chain infrastructure, the minister added.
A detailed note on creation of such a fund is being worked out jointly by the food and agriculture ministries and will soon be sent to the Planning Commission for its approval. Sources in the food ministry informed that the department is pushing hard to ensure that an announcement with regard to special fund for onion is made in the Union Budget for 2012-13.
As per the plan, the idea is to help agencies such as the National Agricultural Cooperative Marketing Federation (Nafed) on price support operations in a more effective manner, to stop distress sales by farmers.
The SDF also helps sugar millers undertake measures to improve production, storage and transportation of cane. Between September 17 and December 31, the inflation in onions moved from plus 17.04 per cent to minus 74.77 percent. “It (the fund) will also help in development of modern storage facilities in onion growing regions,” Mr Thomas said.