Government to Release Onion from Buffer Stock to Stabilize Prices, Explores E-Auction and Discounted Sales
The Indian government has announced its decision to release onion from its buffer stock in targeted regions to ensure the stabilization of prices until the arrival of the new crop in October. With the current supply season facing some challenges, the government intends to keep onion prices in check by taking immediate action.
To manage the disposal of onion, the government is exploring various options including e-auctions, e-commerce, and discounted sales through states. It aims to leverage retail outlets of consumer cooperatives and corporations to make onions available at reduced rates. As part of its proactive measures, the government has stored 3 lakh tonnes of onions in the Price Stabilisation Fund (PSF) to address any potential crises arising from a significant price increase during the lean supply season.
According to government data, the retail price of onions in India has risen slightly, with the all-India average reaching Rs 27.90 per kilogram on August 10. This represents a marginal increase of over Rs 2 per kilogram compared to the same period last year.
Consumer Affairs Secretary, Rohit Kumar Singh, confirmed that onions would be released from the buffer stock immediately to address the situation. The modalities for the disposal of onions have been finalized in consultation with officials from the cooperative NAFED and the National Cooperative Consumers’ Federation of India Limited (NCCF).
The government’s statement highlighted that the release of onion stocks would be focused on markets in regions where retail prices exceed the all-India average and where price escalations have surpassed the threshold level. The quantity and pace of disposal will be adjusted based on the availability and price situations to ensure that consumers have access to affordable onions.
In addition to market disposal, the government has also decided to offer discounted rates to state governments for sale through their consumer cooperatives and corporations’ retail outlets. This move aims to further enhance the availability of onions to the public.
This year, a total of 3 lakh metric tonnes of onions have been procured for the buffer stock, and authorities have stated that the quantity may be increased if the situation demands. NAFED and NCCF have jointly procured 1.50 lakh tonnes each of rabi onions from Maharashtra and Madhya Pradesh during June and July. Furthermore, in collaboration with the Bhabha Atomic Research Centre (BARC), the government has taken up the irradiation of onions on a pilot basis to minimize storage losses. As a result, approximately 1,000 tonnes of irradiated onions have been stored in controlled atmosphere storage.
Over the past four years, the size of the onion buffer has tripled, growing from one lakh tonnes in 2020-21 to three lakh metric tonnes in 2023-24. The government has acknowledged the significant role that the onion buffer plays in ensuring the availability of this essential kitchen staple to consumers at affordable prices while maintaining price stability.
Rabi onion harvests, which take place from April to June, account for 65 percent of India’s onion production and bridge the demand-supply gap until the kharif crop is harvested in October-November.
In conclusion, the Indian government’s decision to release onions from its buffer stock demonstrates its commitment to stabilizing prices and meeting the demands of consumers. By exploring various avenues such as e-auctions, e-commerce, and discounted sales through state cooperatives and corporations, the government aims to ensure the availability of affordable onions to the public. These efforts, combined with the increased buffer stock and initiatives like irradiation, aim to address potential challenges in the onion market and maintain price stability for the benefit of the consumers.
