Onion Buffer Capacity Rises from 300,000 MT to 500,000 MT

The government has taken a significant step by increasing the onion buffer stock to 5.00 lakh metric tonnes this year in an unprecedented move, surpassing the initial procurement goal of 3.00 lakh metric tonnes.

To achieve this additional procurement target, the Department of Consumer Affairs has instructed both NCCF and NAFED to procure 1.00 lakh tonnes. This strategic decision aims to ensure a steady supply of onions in major consumption centers while maintaining an equilibrium in prices.

Efforts are already underway to distribute the buffer stock. Approximately 1,400 metric tonnes of onions have been dispatched from the buffer to targeted markets, with a continued release plan to enhance availability. The focus is on markets within states and union territories where retail prices exceed the national average or have notably risen compared to the previous month.

Furthermore, the government has decided to provide subsidized onions to retail consumers at a rate of Rs. 25/- per kg through NCCF's retail outlets and mobile vans, starting from Monday, August 21, 2023. This initiative aims to ease the burden on consumers while stabilizing prices.

The government's multi-pronged approach, including strategic procurement for the buffer, controlled release of stocks, and the imposition of export duties, will yield several benefits. Farmers can expect more remunerative prices for their onions, fostering their livelihoods, while consumers will have access to onions at reasonable prices. These combined efforts underscore the government's commitment to ensuring a balance between agricultural prosperity and consumer affordability.

In the forthcoming days, the retail sale of onions will be expanded through various agencies and even e-commerce platforms, further enhancing the accessibility of this essential commodity.