Union Minister Pralhad Joshi Flags Off NCCF and NAFED Mobile Vans Selling Onion at Rs 35/kg

Union Minister of Consumer Affairs, Food, and Public Distribution Pralhad Joshi flagged off mobile vans of the National Cooperative Consumer’s Federation of India Ltd. (NCCF) and the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) on September 05, 2024, to begin the retail sale of onions at Rs. 35 per kg. The event signaled the start of the carefully planned and timed release of onions from the government buffer, enabling customers to purchase the necessary vegetable at a reasonable price.

Joshi stated that controlling food inflation remains a key priority for the Government of India, with several direct interventions, including price stabilization measures, playing a significant role in reducing inflation in recent months.

Joshi mentioned that the government currently holds a buffer stock of 4.7 lakh tonnes of onions from the rabi crop. He highlighted that the Price Stabilisation Fund, launched under the leadership of Prime Minister Narendra Modi, is designed to intervene in the market when prices of essential commodities rise. He also indicated that the retail sale of onions is expected to offer relief to consumers across the country.

Retail sales are being initiated through NCCF and NAFED stores, mobile vans, e-commerce platforms, and Kendriya Bhandar and SAFAL outlets in major consumption centers. Depending on onion price trends, the quantity and distribution channels will be adjusted, expanded, and diversified as needed.

The Indian government's Department of Consumer Affairs keeps track of the daily prices of 38 commodities, including onions, which are reported from 550 locations throughout the nation. The primary sources of information used to determine the quantity and locations of onion release from the buffer are the daily pricing data and the comparative trends.

Crucially, this year's procurement of 4.7 lakh tonnes of onions from the rabi crop is being done for price stabilization buffer through NCCF and NAFED, as opposed to 3.0 lakh tonnes last year. The onion was purchased directly from farmers or farmer's federations in the main Madhya Pradesh and Maharashtra rabi onion-producing regions. Payments were made directly into the farmers' bank accounts. This year, onion operations established an integrated system for tracking the acquisition, storage, and disposal of onions by utilizing technology to record every step of the process.

The mandi modal prices this year have stayed in the range of Rs. 1,230 – Rs. 2,578 per quintal, as opposed to Rs. 693 – Rs. 1,205 per quintal last year, meaning that price realization for onion growers during this rabi season has been better than last year. In keeping with that, the average cost of purchasing buffers this year was Rs. 2,833 per quintal, compared to Rs. 1,724 per quintal the previous year. Since store-worthy onions are purchased for the buffer, the onion procurement costs have consistently exceeded the current modal price.

Given that the kharif sowing area has increased by 102% as of August 26, 2024, over the previous year, the forecast for onion availability and prices in the upcoming months is still favorable. Department of Agriculture data shows that as of August 26, 2024, 2.90 lakh hectares were covered with kharif onions, compared to 1.94 lakh hectares over the same period the previous year. Furthermore, it is said that farmers and traders still have roughly 38 lakh tonnes of onions in storage.

The availability and pricing of the onion crop are being closely monitored by the Department of Consumer Affairs so that appropriate action can be taken in the best interests of farmers and consumers. In this sense, the government will take the required steps to guarantee farmers receive fair payments while keeping onions reasonably priced for consumers.

Onion disposal at retail will begin in Mumbai and Delhi NCR on September 05, 2024. After that, agencies will cover Kolkata, Guwahati, Hyderabad, Chennai, Bangalore, Ahmedabad, Raipur, and Bhubaneshwar during the course of the following week. Distribution throughout India will begin in the third week of September, as agencies are collaborating with major retail chains and other cooperatives in the country.