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Informist, Monday, Mar. 24, 2025

 

By Pallavi Singhal 

 

NEW DELHI – The consumer affairs ministry is looking to procure 500,000 tonnes of rabi onion this year, almost on par with the 470,000 tonnes of onion procured last year, a senior government official told Informist. According to the official, the government will commence procurement after Apr. 15, which coincides with the peak arrival period.

 

To address logistical challenges, the ministry is securing warehouses near consumption centers, as per the official. "Generally, onions were stored in Nashik (Maharashtra), which causes issues during the lean season when we have to transport them across the country for price management," the official said. To mitigate this problem, the government plans to store at least half of the procured onions at warehouses in and around Delhi, with Sonipat, Haryana, being considered as a potential storage location, the official added.

 

Last year, the government had procured 470,000 tonnes of rabi onion for the price stabilisation buffer last year, and had started to release the stock from Sept. 5 through subsidised retail and bulk sales in major mandis across the country. Bulk shipment of onions was also sent to Chennai and Guwahati, where prices continued to be elevated. 

 

According to the first advance estimate released by the Department of Agriculture and Farmers' Welfare, production of rabi onions for 2024-25 (Jul-Jun) is expected to reach 22.7 million tonnes, up 18% on year. India annually produces around 28-30 million tonnes of onions and is among the world's largest producers of the crop, with rabi onions accounting for nearly 75% of the country's total onion production.

 

Onion prices tend to increase during the lean period of September to December, while it falls thereafter, due to the gap between rabi and kharif crops. It is during this time that the consumer affairs ministry steps in to control the rise of prices. Onion prices are currently hovering around INR 1,300 per 100 kg in Lasalgaon, Maharashtra. The current all-India average price of onion is INR 2,530 per 100 kg.  End

 

 

Edited by Tanima Banerjee

 

 

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