The Sunil Pawar Committee, tasked with examining the intricacies of the onion market in Maharashtra, has recommended the initiation of electronic auctions (e-auctions) for onions in all market committees. The primary objective is to thwart the prevalent sale of onions at bargain prices and foster a competitive pricing environment. While the proposal aims to benefit both farmers and traders, it has elicited a diverse range of responses from the stakeholders involved.
The onion harvesting season presents a unique challenge in the onion-growing regions, where market committees witness a surge in onion arrivals. Faced with the absence of adequate storage facilities, farmers often opt to sell their produce promptly rather than risk spoilage. Exploiting this situation, traders capitalize on increased supply, resulting in reduced prices. The introduction of e-auctions, or the electronic National Agriculture Market (e-NAM) scheme, is envisaged as a solution to address these market dynamics. Currently, e-NAM transactions are already underway in 118 market committees across the state.
Extending the e-NAM framework to all market committees could potentially stabilize onion prices by facilitating transactions during periods of heightened demand from various parts of the country. Additionally, the transparent nature of e-NAM transactions fosters better coordination between farmers and traders. The committee further recommends the direct deposit of funds into farmers’ bank accounts, streamlining the financial aspects of onion trade.
In the aftermath of the Covid-19 pandemic, concerns surrounding onion exports emerged, particularly in relation to the economic conditions of Sri Lanka and Nepal. To mitigate these apprehensions, the committee suggests conducting financial transactions with neighboring and friendly countries in rupees. The report stresses the need for the central government to permit onion exports to neighboring countries, particularly during the harvesting season when onions are unsuitable for extended storage.
