Govt. raises onion buffer to lower prices

The government has raised the onion buffer to five lakh metric tonnes for this year, after meeting the initial procurement target of three lakh metric tonnes.

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The government declared an increase in the amount of onion buffer to five lakh metric tonnes for this year. This expansion came after successfully reaching the initial goal of procuring three lakh metric tonnes.

The Consumer Affairs Department has instructed both the National Cooperative Consumers’ Federation (NCCF) and the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) to purchase approximately one lakh metric tonnes of onions. This directive aims to help meet the extra procurement goal effectively.

These organizations will sell onions at a price of Rs 25 per kilogram through NCCF outlets and mobile vans starting from August 21, 2023.

“Retail sale of onion will be suitably enhanced in coming days by involving other agencies and e-commerce platforms,” the government said in a release.

In the previous week, in response to increasing onion prices in various regions of India, the national government initiated the release of stored onions from its reserve supply. The distribution of onions from the reserve has begun, with a focus on major markets in States and Union Territories. These selected markets are those where retail prices exceed the national average and/or have notably risen compared to the previous month.

As of now, approximately 1,400 metric tonnes of onions from the reserve have been sent to the designated markets, and a steady distribution is ongoing to increase the supply. The average retail price of onions across India was observed to be 19% higher at Rs 29.73 per kilogram on Sunday, in contrast to Rs 25 per kilogram during the same period last year. In Delhi, the retail price of onions has risen from Rs 28 per kilogram to Rs 37 per kilogram in the mentioned timeframe.