India raises onion buffer stock to 5 LMT for price stability. NCCF to sell at ₹25/kg. Export duty imposed to balance farmer and consumer interests.
In response to the volatile onion market and to ensure stable prices for consumers, the Indian government has announced the augmentation of the onion buffer stock from three lakh metric tonnes (LMT) to five LMT. This strategic move aims to curb potential price fluctuations and guarantee a steady supply of this essential vegetable across the nation. The National Cooperative Consumers’ Federation of India Limited (NCCF) has been entrusted with the task of selling onions to consumers at a retail price of ₹25 per kilogram, starting from the following day.
To further address the situation, the government recently implemented a 40% export duty on onions. The Union Consumer Affairs Department issued a statement asserting that the combination of measures including buffer procurement, controlled stock release, and export duty imposition will benefit both farmers and consumers. The goal is to provide onion farmers with fair prices for their produce while ensuring a continuous and affordable supply to consumers.
The Department’s decision to expand the buffer stock has been deemed unprecedented. It has directed the NCCF and the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) to procure one lakh metric tonne of onions, thus achieving the augmented procurement target. The surplus stocks will be gradually released into major consumption hubs.
Already, the process of releasing onions from the buffer has commenced. Roughly 1,400 metric tonnes of onions have been dispatched to targeted markets and are being systematically removed to boost availability. This approach primarily targets regions where retail prices surpass the national average or have significantly risen compared to the previous month.
Furthermore, the government is taking steps to make subsidized onions available to consumers. The NCCF will sell onions at a subsidised rate of ₹25 per kilogram through its retail outlets and mobile vans. In the coming days, retail sales of onions will be scaled up, involving multiple agencies and e-commerce platforms to ensure widespread access to this staple vegetable at reasonable prices. This comprehensive approach underscores the government’s commitment to safeguarding both farmers’ interests and consumers’ affordability.
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