Nafed blocks onion procurement IDs of 12 Nashik co-op societies over bank guarantee lapse

Nashik: In a move set to disrupt onion procurement in Nashik, the National Agricultural Cooperative Marketing Federation (Nafed) has blocked the procurement IDs of 12 out of the 18 cooperative societies after they failed to submit the mandatory bank guarantee, officials said on Tuesday.

The action leaves only six societies eligible, raising concerns over stalled procurement at key APMC markets, including Lasalgaon.

Officials said a Rs 10 lakh bank guarantee is mandatory under Centre’s price stabilisation fund (PSF) scheme to ensure financial security and smooth operations. Despite multiple reminders issued over the past month, the defaulting societies failed to comply, prompting strict action.

“Without valid IDs, these societies cannot take part in onion procurement. The action was necessary to enforce compliance with guidelines,” an official said.

The disruption comes close on the heels of Nafed inviting expressions of interest last month for procurement operations in the district. However, delays in meeting eligibility norms have slowed the rollout at APMCs.

The impact was visible at Lasalgaon APMC, where no procurement auctions were conducted by Nafed on Tuesday, officials said. Centre has set a 2 lakh tonne procurement target, split equally between Nafed and NCCF.

Procurement has also been affected by unfavourable market conditions. Nafed’s procurement price of Rs 1,580 per quintal is lower than prevailing market rates, which range between Rs 1,600 and Rs 2,000, leading to poor farmer participation.

APMC officials said farmers prefer open market auctions. “Most farmers prefer open market auctions, where prices are higher and produce is sold without stringent quality checks,” officials said, adding that under Nafed norms, substandard produce is rejected and must be resold.

Meanwhile, onion prices at Lasalgaon showed a marginal dip, with the average falling to Rs 1,560 per quintal from rs 1,651 a day earlier. Prices ranged between Rs 700 and Rs 2,085 per quintal, with 18,636 quintals auctioned on the day.