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.)