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Seasonal, Shock Components Contribute To Spikes in Tomato, Onion Prices, Says Economic Survey

The Economic Survey said the government also procures onions directly from farmers at farm gate prices for the buffer.

Updated: January 31, 2022 7:49 PM IST

By Business Desk | Edited by Manmath Nayak

Tomato Price Hike
Apart from tomatoes, green vegetables have also gone costlier in comparison to the last week.

Economic Survey 2022: The Economic Survey 2022 tabled on Monday stated that the seasonal, as well as shock components, contribute to the spikes of tomato and onion prices, and requires policy attention. The seasonality in prices results from seasonal production patterns, it said.

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“Strategies to incentivise production during lean season should be designed. Investments in processing of surplus production of tomato, and processing and storage infrastructure of onion must be promoted. Cutting wastage of the production, better supply chain management will also help in meeting the demand,” the Survey said.

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The Economic Survey also noted that Central government is implementing various measures to overcome these challenges.

According to the Economic Survey, the mission for ‘Integrated Development of Horticulture’ (MIDH) envisages holistic development of horticulture and provides assistance at 50 per cent of total cost of Rs 1.75 lakh per unit for low-cost onion storage structure having a capacity of 25 tonne each.

“Government also procures onions directly from farmers at farm gate prices for the buffer,” the Survey added.

Apart from this, the Centre runs other schemes such as ‘Agricultural Marketing Infrastructure’ (AMI) for rural warehouses which enables small farmers to enhance their holding capacity to sell their produce at remunerative prices and avoid distress sale and “Operation Greens” for integrated development of ‘Tomato, Onion and Potato’ (TOP) value chain.

“It provides 50 per cent subsidy for the transportation and storage from surplus producing areas to consuming centres,” the Survey added.

(With inputs from IANS)

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Published Date: January 31, 2022 7:47 PM IST

Updated Date: January 31, 2022 7:49 PM IST