Minister for Marketing and Irrigation T. Harish Rao has warned traders against creating artificial scarcity of onion in the name of demonetisation of higher denomination currency notes and said that steps were being taken to ensure ample supply from within the State and nearby areas.
He said that onion would be directly purchased from farmers by the Marketing Department and made available to consumers across the State at Rs. 10 per kg. At a meeting held here on Tuesday to take stock of the situation arising out of marketing transactions coming to a standstill following demonetisation of Rs. 500 and Rs. 1,000 notes, he directed the Marketing Department officials to procure onion directly from farmers in Kollapur, Alampur and other areas and bring it to Malakper market and Rythu Bazaars.
Representatives of onion traders explained to the Minister that they were incurring an expenditure of about Rs. 50,000 per lorry load of onions, including transportation and handling (hamali) charges from Maharashtra and other areas and it was not possible for them to make payment due to demonetisation of notes.
The Minister directed the officials to procure onion directly from farmers at Rs. 8 per kg by forming special teams and make it available to consumers at Rs. 10 per kg. Since Malakpet market was congested, he suggested the officials to bring the onion procured from farmers to the new market yard set up close to the outer ring road near Patancheru.
On bringing amendments to the Marketing Act, he decided to hold a meeting with the experts from NALSAR and ASCI within a week. Further, he wanted the officials to inspect cotton ginning mills from Adilabad to Khammam.
