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PTI Kolkata
Updated: 19-12-2018 18:01 IST

State-owned MSTC Ltd would start

reverse e-auction of onions to aid Nasik farmers who have been

reeling under price crash following bumper production, an

official said Wednesday.

Mother Dairy would lend support to the endeavour by

procuring 20 tonnes of onion a day, the official said.

"We have decided to support the onion farmers of

Nasik. We have technology in place to carry out auction of

agri commodities. Our officers are already there to execute a

plan of offering a market for the farmers," MSTC chairman and

managing director B B Singh said Wednesday on the sidelines of

an MSME conclave organised by the Confederation of Indian

Industry (CII) here.

Reserve auction is a type of auction in which the

roles of buyer and seller are reversed and the lowest price

discovery is made from a base price.

Onion prices in Maharashtra's Nasik fell below Rs 2 a

kg forcing farmers to dump the crop, while the same commodity

sells for Rs 25-30 a kg in markets such as Delhi-NCR and


"We will commence reverse e-auction of the crop for

Mother Dairy in the next 4-5 days with a floor price of not

less than Rs 6-8 a kg which we hope to help better price

realisation in the period of crisis," he said.

The input cost for cultivation of a kilogram of onion

has been fixed at Rs 8.50 by the Directorate of Onion and

Garlic Research (DOGR).

Mother Dairy has assured to procure 20 tonnes of

onions daily to sell them through its 150-odd retail outlets

in the Delhi-NCR region.

Singh said MSTC is in talks to engage more buyers

like Spencers, Reliance Fresh and other organised retailers

to create demand for the onions grown in Nasik.

However, MSTC is yet to reeive any positive feedback from

private retail chains of the country in the venture, Singh


(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)