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Government Initiatives to Stabilize Onion and Potato Prices

by Виктор Ковалев
July 10, 2024
in AGROTECHNOLOGY
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Government Initiatives to Stabilize Onion and Potato Prices

Виктор Ковалев

Stored Produce Release Expected to Balance Market Dynamics

The Indian government has announced measures to stabilize market prices for key vegetables such as onions and potatoes by releasing stored produce. This move comes amidst favorable agricultural conditions following a successful monsoon season, which has facilitated robust sowing of horticultural crops, particularly onions and potatoes, during the ongoing kharif season. Officials from the Ministry of Agriculture highlight that the increased release of rabi onions by farmers, driven by favorable market prices and concerns over storage losses due to heightened atmospheric moisture from monsoon rains, is a crucial factor contributing to price stabilization.

For the kharif season, onion cultivation has targeted an area of 361,000 hectares, marking a significant 27% increase from the previous year. Karnataka, a leading state in kharif onion production, has completed sowing in 30% of its targeted 150,000 hectares, with progress also noted in other major onion-producing states. While traditionally a rabi crop, kharif potatoes are cultivated across states like Karnataka, Himachal Pradesh, Uttarakhand, Meghalaya, Maharashtra, and Tamil Nadu, with harvests expected between September and November, enhancing market availability.

The targeted area for kharif potato cultivation has seen a 12% increase from last year, with Himachal Pradesh and Uttarakhand achieving nearly full sowing coverage. A significant amount of rabi potatoes, totaling 273,200 tonnes, has been stored, deemed adequate to meet consumption needs. The availability of stored potato supplies typically influences market prices from March through December.

High prices for onions and potatoes this year can be attributed to reduced output last year, exacerbated by a dry summer and low reservoir water levels since April, impacting the supply of various vegetables and shifting consumer preferences towards onions, potatoes, and tomatoes.

Tags: Indian agricultureMarket Stabilizationonion pricespotato pricesstored produce release
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