Pune, July 8 (ET): India's biggest onion producer, poll-bound Maharashtra, has refused to toe the line of the central government on controlling onion and potato prices, as it acted to protected the interest of farmers as well as traders who had called a strike in protest of the Centre's stern stand against traders.
Maharashtra agriculture and marketing minister Radhakrishna Vikhe Patil, in a meeting held on Monday in Mumbai with the APMC representatives decided that the state will not impose stock limit on onions and potatoes nor will it delete the two commodities from the APMC act.
Removing the commodities from the act would have allowed farmers to sell their produce directly to any customer instead of being forced to come to a mandi, where middlemen and commission agents thrive.
The state will also write to the central government to immediately remove the minimum export price (MEP) on onion.
Trade experts say that irrespective of the denial of Maharashtra to implement centre's guidelines, onion prices are bound to increase in September/October.
The APMCs in Nashik district, the onion capital of India on Sunday had threatened to go on a strike from Monday to protest against the 'anti-farmer' decisions of central government.
A top government source said: "On the first issue of imposing stock limit on onion under the Essential Commodities Act, we have decided that we will not impose any stock limit.
The reason is that most of the onion in Maharashtra is stored by the farmers and traders do not own any storing structures/godowns.
The second instruction of the central government to the states was about removing onion and potatoes from the purview of the APMCs, which are considered the places, where price manipulation takes place. "Government has no problem in de-regulating onions and potatoes from the APMC act.
However, it will require some gestation period as there is no alternative available to farmers to sell their produce, as well as for buyer to buy it. Meanwhile, we will give direct marketing licenses to farmers' groups and womens' self help group to sell onion directly to the consumers," said the official on condition of anonymity.