Inflation: The central government has started releasing the basic vegetable from its buffer supply since onion prices in some regions of India have increased. When supplies are scarce, buffer stock is kept on hand to cover any needs and stabilise prices if they rise dramatically.
Strategic Meeting for Onion Disposal Procedures
The Managing Directors of the government’s agricultural marketing organisations, the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers’ Federation of India Limited (NCCF), met with Rohit Kumar Singh, Secretary of Food and Public Distribution, on Thursday to finalise the disposal procedures. “It was decided to release the onion stocks by targeting key markets in states or regions where retail prices are ruling above the all-India average and also where the rates of increase in prices over the previous month and year are above the threshold level. Disposal through e-auction and retail sales on e-commerce platforms are also being explored,” a food ministry release said Friday. With the aim of making onions available to consumers at reasonable rates, the “quantity and pace of disposal” will also be adjusted with the prices and availability conditions. The decision to offer discounted prices to the States for sale through retail locations of their consumer cooperatives and corporations was made in addition to market disposal, according to the announcement.
Strong Onion Buffer Boosts Price Stability
“Onion buffer size has been tripled in the past four years; from 1.00 lakh metric tonnes in 2020–21 to 3.00 lakh metric tonnes in 2023–24. The onion buffer has played a key role in ensuring the availability of onions to consumers at affordable prices and in maintaining price stability,” it said. 60% of India’s onion production that is harvested during the Rabi season, which runs from April to June, satisfies consumer demand until the Kharif crop is harvested in October or November. During the lean supply season, the purchased inventories are typically issued through targeted open market sales as well as to states, Union territories, and government agencies for supplies through retail outlets.
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