Government initiates release of onion from buffer stock to stabilise prices

Price of onion is soaring in August and is likely to continue its the upward journey till September.

In a strategic move to counter the volatility in onion prices and ensure the availability of this essential commodity at affordable rates, the Department of Consumer Affairs announced the commencement of the release of onion from its buffer reserve.

The buffer stock amounting to 3 lakh metric tonnes was built under the Price Stabilisation Fund, reflecting the government's commitment to curbing price fluctuations and maintaining market stability.

Rohit Kumar Singh, Secretary of the Department, had convened a crucial meeting with the Managing Directors of the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers' Federation (NCCF) on August 10.

During the meeting, the modalities for the release of the onion stocks were finalised, outlining a targeted approach to key markets in states or regions where retail prices exceed the national average. The release will also be prioritised in areas where the rate of price increase, both month-on-month and year-on-year, surpasses the set threshold level.

The release of buffer onion stock will be conducted through e-auction and retail sales on prominent e-commerce platforms to facilitate efficient distribution and equitable access. This innovative approach seeks to align supply with demand, ensuring that consumers are provided with onions at reasonable prices. Furthermore, states will be offered the option to procure onion from the buffer stock at discounted rates for sale through their consumer cooperatives and corporations.

Also read: India’s grain stockpiles are key to PM Modi’s pre-election strategy

This year, the buffer was fortified with the procurement of 3 lakh metric tonnes of onions. Notably, the central nodal agencies NAFED and NCCF procured 1.5 lakh metric tonnes of onions each from Maharashtra and Madhya Pradesh in June and July.

Additionally, a pioneering irradiation process, conducted in collaboration with the Bhabha Atomic Research Centre (BARC), has been undertaken to minimise storage losses. Approximately 1,000 metric tonnes of irradiated onions have been stored in controlled atmosphere storage facilities, marking a significant step in enhancing the efficiency of onion preservation.

The augmentation of the onion buffer, from 1 lakh metric tonnes in 2020-21 to 3 lakh metric tonnes in 2023-24, signifies the government's dedication to securing a stable market and affordable prices for consumers. This proactive approach has been instrumental in preventing undue price hikes and ensuring the consistent availability of onions even during lean seasons.

The government's commitment to stabilise onion prices through strategic buffer management underscores its efforts to uphold the interests of consumers and maintain economic equilibrium in the agriculture sector.