Govt To Maintain Increased Onion Buffer Stock Of 5 Lakh Tonne This Year

NCCF also plans to make the buffer stock available to retail consumers in key markets at subsidised prices of Rs 25 per kg via retail outlets and mobile vans from Monday onwards.

Government announced that it will secure an extra 2 lakh tonnes of onions and maintain the 5 lakh tonnes buffer stock to use it for retail intervention.  ( Image Source :Getty )

The Indian government announced on Sunday that it will maintain a total buffer stock of 5 lakh tonnes of onions for the year. The announcement comes after the government levied a 40 per cent duty on onion exports on Saturday, in order to control prices and maintain domestic supplies.

According to a PTI report, the government announced that it will secure an extra 2 lakh tonnes of onions and maintain the 5 lakh tonnes buffer stock to use it for retail intervention. 

Notably, the current target for onion buffer was maintained at 3 lakh tonnes for 2023-24, which the government already possesses. The report added that the government is using the same stock by disbursing it in selected markets in certain states to increase local availability and keep control on price rise. 

The pan-India average retail price of onion stood 19 per cent higher on Sunday, on a year-on-year (YoY) basis. The average retail price was Rs 29.73 per kg compared to Rs 25 per kg for the same period a year ago, based on official data. In the national capital, the retail price of onion increased from Rs 28 per kg to Rs 37 per kg for the stated period. 

The Consumer Affairs Ministry released a statement and said, “In an unprecedented move the government raised the quantum of onion buffer to 5 lakh tonne this year, after achieving the initial procurement target of 3 lakh tonne.”

In it’s statement, the ministry directed the National Cooperative Consumers’ Federation of India (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED) to secure one lakh tonne onions each to reach the extra procurement target along with calibrated disposal of the stocks in main consumption centers. 

Notably, under the Price Stabilisation Fund (PSF), a buffer stock is maintained to deal with any crisis or emergency, specifically if prices surge during the reduced supply season. For the previous fiscal year of 2022-23, the government maintained a buffer onion stock of 2.51 lakh tonne. 

The ministry further stated details about disbursing the buffer stock and revealed that distribution has already begun in major markets across states and union territories which saw retail prices moving above the all-India average and/or increasing significantly compared to the previous month. 

The statement added, “As of date, about 1,400 tonnes of onions from the buffer have been dispatched to the targeted markets and are being continuously released to augment the availability,” as reported by PTI. 

NCCF also plans to make the buffer stock available to retail consumers in key markets at subsidised prices of Rs 25 per kg via retail outlets and mobile vans from Monday onwards. The ministry added, “Retail sale of onion will be suitably enhanced in coming days by involving other agencies and e-commerce platforms.”

The government hopes to help the farmers and consumers through the various measures it has taken including buffer stock procurement, release of stocks, and levying export duty among others. The ministry stated that the measures are aimed at maintaining the regular availability of onions to consumers at affordable prices and ensuring appropriate remuneration to the onion farmers, the report added.