Bhubaneswar, Aug 3: The state government is planning to replicate the potato mission to tackle the shortage of onion.

"The onion mission will be set up shortly," said agriculture minister Pradeep Maharathy.

Under the mission, a long-term strategy will be formulated to increase onion production and storage capacity. Although the state produces more than its requirement, lack of storage facilities result in scarcity of the perishable commodity. Onion is being sold between Rs 40 and Rs 45 a kilo at present.

The state is largely dependent on Nasik in Maharashtra for supply of onions. However, crop loss there has caused shortage in the state as well. This has forced the state government to procure onion from Andhra Pradesh and Karnataka to meet the shortfall.

Admitting shortage of storage facilities has triggered the crisis, Maharathy said: "The state produces 3.95 lakh metric tonne in a year against a demand of 2.97 lakh metric tonne."

"The farmers are compelled to sell their produce due to lack of storage space," he said. Nearly 300 more storages would be set up across the state, he said.

The state government has also announced capital investment subsidy and other incentives to encourage entrepreneurs to set up cold storages.

Cooperation minister Damodar Rout said his department was going to set up 10 cold storages and revive nine departmental ones.

"Onions can be preserved in low-cost units in airy atmosphere," said an agriculture expert, adding that it did not require major investment.

Rout said lack of proper market linkage was also a reason for onion scarcity. He said the civil supplies department to take care of it.

"Farmers of Balangir district sell their produce to Raipur traders, while those in undivided Koraput send them to Andhra Pradesh. But consumers in the coastal belt face scarcity due to lack of market linkage," he said.