Kerala to sell onions at ₹35/kg as prices soar; 100 tonnes to be procured

Thiruvananthapuram: The Kerala government has decided to procure 100 tonnes of onions through the National Cooperative Consumers' Federation (NCCF) and sell them at ₹35 per kg as part of urgent measures to contain the sharp rise in prices.

Agriculture Minister T Siddique said onion prices in different markets in Kerala had risen to between ₹58 and ₹80 per kg. He said the government would not allow market forces to push up prices unchecked and would intervene to ensure affordable supplies.

“We have decided to procure 100 tonnes of onions through the NCCF and intervene in the market immediately. The onions will be sold at ₹35 per kg,” Siddique said.

An order for the first 30 tonnes will be placed immediately, with the stock expected to reach Kerala within two to three days, he said. HortiCorp, under the Agriculture Department, and Supplyco under the Civil Supplies Corporation will jointly coordinate the distribution.

The minister said onion prices had increased at major production centres such as Maharashtra’s Nashik and in Karnataka. He attributed the rise partly to wholesalers stocking large quantities and partly to insufficient quantities of onions reaching markets from farmers.

“Money will not be a constraint. We will take whatever steps are necessary to make sufficient quantities of produce available in the market,” Siddique said.

Markets in parts of Kerala, including Kollamkode, Kayamkulam, Chala and North Paravur, have recorded particularly steep price increases. The government plans to begin the intervention in such markets and expand it to other parts of the state within days.

As onions are perishable, the government has also initiated steps to make cold-storage facilities available. These include the Agriculture Department-controlled facility at Vazhakulam as well as other cold-storage facilities across Kerala. The government is expecting the NCCF intervention to help contain the abnormal increase in onion prices.

Kerala to seek ₹500 crore for coconut rejuvenation
The minister also announced plans for a ₹500-crore coconut rejuvenation project in Kerala.

Siddique said he had sought support from Union Agriculture Minister Shivraj Singh Chouhan during his recent visit to Delhi. He also held discussions with Union Minister of State for Agriculture Ram Nath Thakur on the proposal.

Following discussions with the Coconut Development Board on August 17, the Agriculture Department decided to formulate the project and submit it to the Central Government.

The minister also announced plans to establish a Coconut Development Park in Kerala, with Kuttiady in Kozhikode district being considered as the location.

The proposed park will cover various aspects of the coconut sector, including seeds and planting materials, cultivation and maintenance, marketing, value addition, packaging and exports, as well as interventions to address diseases affecting coconut palms. The state government will seek Central assistance for the project.

₹14.25 crore worth of vegetables procured for Onam
The Agriculture Department and allied agencies had procured 20,65,500 kg of agricultural produce during the latest Onam season. Vegetables worth ₹14.25 crore were procured and distributed through various markets.

The Onam market intervention was carried out through a fully digital platform, allowing payments to farmers to be made on the same night or the following morning.

During the previous Onam season, the Agriculture Department, HortiCorp and the Vegetable and Fruit Promotion Council Keralam (VFPCK) had jointly organised 2,000 vegetable markets across Kerala to control prices.

Siddique said the intervention had helped reduce prices of various vegetables by up to 38%. In one instance, when the open-market price was around ₹52 per kg, the government markets sold the vegetable at around ₹35.

The government had expected vegetable prices to decline after Onam as usual, but prices remained high even at production centres this year, necessitating continued market intervention.

Crop losses after floods
The Agriculture Department has launched a special drive to assess crop losses caused by the recent floods, Agriculture Minister T Siddique said. The State Disaster Management Authority (KSDMA), State Level Bankers' Committee, NABARD and RBI have discussed relief measures for affected farmers. KSDMA is expected to issue a notification on the extent of flood damage within two or three days, after which further financial assistance will be considered.

Around ₹120 crore in financial assistance for natural calamity-related crop losses has remained unpaid for about five years, Siddique said. The Minister said that he has discussed releasing the amount in phases with Chief Minister V D Satheesan, who also holds the Finance portfolio. The state has also sought an immediate ₹110-crore allocation and a Central team to assess the recent agricultural losses.

Siddique also said most dues from the previous paddy procurement season had been cleared. The government completed 100% procurement, issued PRS documents and completed verification. Following problems with cooperative banks in Palakkad, the government brought the banking consortium into the process and provided a government guarantee. The state released ₹104 crore and another ₹150 crore, while the Civil Supplies Corporation coordinated with the Centre to secure pending funds. Only small amounts from earlier periods are likely to remain unpaid. Consultations on the next paddy procurement season have also begun.