The Indian government on Friday announced its decision to release onions from its buffer stock in targeted regions with immediate effect. This move is aimed at ensuring price control until the arrival of the new onion crop in October. Exploring multiple avenues for distribution, the government is considering options such as e-auctions, e-commerce platforms, and discounted rates through state channels, utilizing retail outlets owned by consumer cooperatives and corporations.
At present, the government has stored 300,000 tonnes of onions within the Price Stabilisation Fund (PSF). This reserve has been established to address potential emergencies in case prices experience a notable surge during periods of low supply.
According to government statistics, there has been a gradual increase in onion prices. As of August 10, the nationwide retail price of this essential kitchen ingredient stood at INR 27.90 per kilogram, reflecting a modest rise of just over INR 2 per kilogram compared to the same period last year.
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“We will release onion from the buffer stock immediately,” said Consumer Affairs Secretary Rohit Kumar Singh.
The details regarding the onion’s distribution have been settled following deliberations with officials from cooperative organizations like NAFED and the National Cooperative Consumers’ Federation of India Limited (NCCF) on August 10, as mentioned by him.
In an official statement, the ministry announced its intention to release onion reserves specifically to strategic markets within states or regions where retail prices are surpassing the national average. This measure will also be implemented in areas where the price escalation compared to the previous month and year exceeds the established threshold.
The government is also considering the possibility of utilizing e-auctions and retail transactions on e-commerce platforms for distribution. The volume and rate of distribution will be adjusted in accordance with price fluctuations and supply conditions, all aimed at ensuring onions remain accessible to consumers at reasonable costs, as stated.
In addition to market distribution, the government has opted to provide state governments the opportunity to procure onions at reduced rates for retail sale through their respective consumer cooperatives and corporations.
During the current year, a cumulative quantity of three hundred thousand metric tonnes of onions has been acquired for the buffer stock. If circumstances necessitate, this amount may be augmented in the future, as mentioned.
In June and July, both NAFED and NCCF procured 150,000 tonnes each of rabi onions from Maharashtra and Madhya Pradesh. As an experimental initiative this year, onion irradiation was carried out in collaboration with the Bhabha Atomic Research Centre (BARC) to reduce storage losses. Approximately 1,000 tonnes were subjected to irradiation and subsequently stored in controlled atmosphere storage facilities.
By sourcing onions from the rabi harvest, the yearly reserves have been established to be distributed in key consumption hubs during periods of low supply. Over the last four years, there has been a threefold expansion in the size of the onion buffer, increasing from one hundred thousand tonnes in 2020-21 to three hundred thousand metric tonnes in 2023-24.
“The onion buffer has played a key role in ensuring availability of onion to the consumers at affordable prices and in maintaining price stability,” the ministry added.
The rabi onion, cultivated from April to June, contributes to 65 percent of India’s total onion production. This variety caters to consumer demand until the kharif crop is harvested between October and November.
