Government Procures 300,000 Metric Tons of Onion for Buffer Stock, 20% Higher than Last Year
In an effort to stabilize onion prices and ensure an adequate supply during the upcoming festival season, the Indian government has procured 300,000 metric tons of onion for its buffer stock. This represents a 20% increase from last year’s stockpile. The Consumer Affairs Secretary, Rohit Kumar Singh, announced on Sunday that the government is also testing the irradiation of onion with the Bhabha Atomic Research Centre (BARC) to extend its shelf life.
The buffer stock, which is maintained under the Price Stabilisation Fund (PSF), serves as a contingency measure to address potential price increases during periods of low supply. Singh stated that the government has developed a robust buffer stock of 300,000 metric tons to meet any exigencies during the festival season and assured that there would be no shortage of onions.
The onions procured for the buffer stock come from the recently completed rabi season. Currently, the sowing of kharif onions is underway, and their arrival in the market is expected to begin in October. This ensures a continuous supply of onions and prevents any disruptions in the market. Singh emphasized that typically, onion prices come under pressure for approximately 20 days until the fresh kharif crop enters the market. However, this time, there will be no such problem due to the ample onion buffer stock.
In addition to increasing the buffer stock, the Consumer Affairs Ministry, in collaboration with the Department of Atomic Energy and the Bhabha Atomic Research Centre, is conducting tests on onion irradiation as an alternative storage method. A pilot project involving the irradiation of 150 metric tons of onions with gamma radiation from Cobalt-60 is being carried out in Lasalgaon, Maharashtra. This process aims to enhance the shelf life of onions and prevent spoilage.
During the 2022-23 fiscal year, the government procured a record 251,000 metric tons of onions from the Rabi-2022 crop under the PSF. These onions were released in major consumption centers between September 2022 and January 2023. Rabi onions, harvested from April to June, contribute to 65% of India’s total onion production. They cater to consumer demand until the Kharif crop is harvested in October and November.
As of July 15, the average retail price of onions across the country was Rs 26.79 per kilogram, with the maximum price reaching Rs 65 per kilogram and the lowest price at Rs 10 per kilogram.
The government’s proactive measures in procuring a higher buffer stock and exploring new storage technologies demonstrate its commitment to curbing onion price fluctuations and ensuring an adequate supply for consumers. These efforts are expected to have a positive impact, particularly during the festival season when the demand for onions typically surges.
