Government Increases Onion Buffer to 5 Lakh MT, Retail Sales Begin at Rs 25/kg

In an unprecedented move, the Indian Government has decided to boost its onion buffer to 5 lakh metric tonnes, marking a significant increase from the initial target of 3 lakh metric tonnes. This decision comes after the successful accomplishment of the initial procurement goal.

The Department of Consumer Affairs has directed the National Cooperative Consumers’ Federation (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED) to collectively procure an additional 1 lakh metric tonnes of onions to achieve the expanded procurement objective. Concurrently, a controlled and strategic distribution of these procured stocks in key consumption hubs is underway.

The distribution process has already begun, with a focus on markets in states and union territories where retail onion prices have exceeded the national average or have shown a notable increase over the previous month. Approximately 1,400 metric tonnes of onions have been dispatched from the buffer to these targeted markets, with a continuous flow being maintained to bolster availability.

Commencing Monday, August 21, 2023, the NCCF will sell onions directly to retail consumers at a subsidized rate of Rs. 25 per kilogram. This initiative aims to ease the financial burden on consumers grappling with escalating onion prices. Retail sales will take place through established retail outlets and mobile vans operated by the NCCF. In the days ahead, other governmental agencies and even e-commerce platforms will join forces to further enhance the distribution network, ensuring onions are readily accessible to all.

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The multifaceted approach adopted by the Government encompasses various measures, including procurement for the buffer stock, targeted distribution, and the imposition of export duties. These initiatives are designed to serve a dual purpose—benefiting both the farmers and the consumers. Onion farmers stand to gain from remunerative prices for their produce, while consumers can anticipate a consistent supply of onions at affordable rates.

The augmentation of the onion buffer and the subsequent strategic distribution underscores the Government's commitment to maintaining a delicate balance between agricultural sustainability and consumer affordability. These steps are expected to have a positive impact on market dynamics and contribute to overall food price stability.

As the NCCF embarks on this path of enhanced retail sales, consumers can look forward to relief in onion prices and increased accessibility, reaffirming the Government's unwavering dedication to the welfare of both its farmers and citizens.

Also Read: Govt Implements 40% Export Duty & Buffer Stock Release to Tackle Rising Onion Prices