AS conveyed by the Ministry of Finance in a notification on Saturday. The aim is to enhance the availability of onions within the domestic market, given the anticipation of rising onion prices in September.This decision follows the central government’s initiation, on August 11, of releasing onions from its buffer stock. The buffer stock is upheld to address any emergent requirements and to stabilize prices if they experience significant escalation during periods of limited supply.
Rohit Kumar Singh, Secretary of the Food and Public Distribution Department, presided over a meeting on Thursday with the Managing Directors of governmental agricultural marketing entities, namely the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers’ Federation of India Limited (NCCF). The discussion culminated in finalizing the mechanisms for onion stock disposal.
The approach outlined involves the strategic release of onion stocks in markets within states or regions where retail prices surpass the national average, and where the rate of price escalation over the preceding month and year exceeds a certain threshold level. The release will be facilitated through avenues such as e-auctions and retail sales via e-commerce platforms, as detailed in a statement by the food ministry on Friday.
India’s Rabi onion, harvested during April to June, contributes to 65 percent of the nation’s onion production and caters to consumer demand until the Kharif crop is harvested in October and November. Procured stocks are typically introduced through targeted open market sales and distributed to states, Union territories, and government agencies for supply through retail outlets during periods of limited supply.
