Onion growers in Maharashtra have called for the state government to procure onions directly via Agricultural Produce Market Committees (APMCs) rather than Farmer Producer Organisations (FPOs), citing allegations of corruption within the existing framework. They have further requested that the Central Government take measures to curb "malpractices" by revising its onion procurement guidelines to favor APMC-centric purchases.
National agencies like the National Agricultural Cooperative Marketing Federation of India (NAFED) and National Cooperative Consumers' Federation of India (NCCF) currently source onions through registered FPOs. However, according to local farmer groups, "Purchasing onions through FPOs has led to large-scale corruption at the local level. Many genuine farmers have been deprived of fair prices. The system benefits intermediaries rather than cultivators."
These grower organizations argue that procuring onions directly via APMCs will facilitate open market pricing, enhance competition, and offer transparency, ultimately aiding farmers in receiving fair compensation. They emphasized, "The FPO-based model has failed to serve its intended purpose. Instead, it has led to the manipulation and exclusion of genuine farmers. The Union government must immediately intervene to prevent further malpractice, and revise its onion procurement guidelines to prioritize APMC-based purchases."
Reportedly, the Maharashtra government has also petitioned the Centre to permit direct procurement through APMCs, avoiding FPO-led purchases. FPOs are structured as legal entities, such as cooperatives or companies, that enable farmers to collectively address their agricultural needs.
Source: Business Standard
