Government Boosts Onion Buffer to 5 Lakh MT and Announces Subsidized Retail Sales

In a groundbreaking development, the Indian Government has announced a significant increase in the country’s onion buffer from 3 lakh metric tonnes to an impressive 5 lakh metric tonnes. This move comes as the Department of Consumer Affairs pursues strategies to stabilize onion prices and ensure their steady availability for consumers.

Buffer Expansion Amidst Surpassing Initial Procurement Target

The Government’s proactive measures have seen an extraordinary augmentation of the onion buffer this year, raising the stakes by achieving an initial procurement target of 3 lakh metric tonnes. To further fortify the buffer, the Department of Consumer Affairs has directed the National Cooperative Consumers’ Federation (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED) to procure an additional 1 lakh metric tonne each. This coordinated effort aims to meet the increased procurement target while also strategically dispensing procured stocks across major consumption hubs.

Strategic Disposal and Retail Sales Initiative

Implementation of onion buffer management is in full swing, targeting key markets across States and Union Territories where retail prices have exceeded the all-India average or have shown significant month-on-month escalation. To date, over 1,400 metric tonnes of onions from the buffer have been dispatched to these markets, with a continuous release planned to augment overall availability.

Starting Monday, August 21, 2023, the NCCF will take a groundbreaking step by selling onions directly to retail consumers at a subsidized rate of Rs. 25 per kg. This initiative not only ensures steady access to this essential kitchen staple but also brings relief to consumers facing rising onion prices.

Collaboration and Future Plans

The Government’s multi-pronged approach involves collaboration with various agencies and e-commerce platforms to further bolster the distribution of onions from the buffer. In the coming days, retail sales of onions will be significantly enhanced by involving additional stakeholders, expanding the reach and ensuring an uninterrupted supply chain.

Benefits to Farmers and Consumers

These concerted efforts by the Government, including buffer procurement, targeted stock release, and the imposition of export duties, are poised to benefit both farmers and consumers alike. Onion farmers can expect more remunerative prices for their produce, while consumers can look forward to sustained access to onions at reasonable prices.

The Government’s proactive measures underscore its commitment to ensuring food security, stabilizing prices, and fostering equitable conditions for both farmers and consumers in the onion market.