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Informist, Wednesday, Apr. 16, 2025

 

--Source: Centre pegs onion buffer procurement at 300,000 tn for FY26

--Govt source: Onion procurement for buffer stock to start from next week

 

By Pallavi Singhal

 

NEW DELHI - In a move reflecting a bumper onion crop, the consumer affairs ministry has set procurement target for buffer stocks at 300,000 tonnes for the current year ending March. The ministry will start onion procurement for the buffer stock from next week, according to a government official. 

 

The consumer affairs ministry was earlier looking to procure 500,000 tonnes of rabi onion this year, almost on par with the 470,000 tonnes procured last year, Informist had reported last month. The official attributed the move to cut procurement target to higher production of the kitchen essential during the season. 

 

"The procurement number has been reduced seeing that the country has had a bumper production of onions this year. We do not think prices of the commodity will go as high as last year," the official explained. The first advance estimate released by the Department of Agriculture and Farmers' Welfare, shows production of rabi onions for 2024-25 (Jul-Jun) is expected to reach 22.7 million tonnes, up 18% on year. 

 

According to an internal circular issued by the ministry, it has assigned a procurement target of 150,000 tonnes of onion each to the National Cooperative Consumers' Federation of India Ltd. and the National Agricultural Cooperative Marketing Federation of India Ltd. A significant portion, approximately 66% or 200,000 tonnes, of the total procurement is slated to come from Nashik. The remaining quantity will be sourced from other districts in Maharashtra, including Pune, Ahmednagar, Solapur, Latur, and Aurangabad.

 

The procurement will be conducted at the minimum assured procurement price which would be calculated by the costing cell of the Department of Consumer Affairs. Prices available in the Agmarknet will be used to calculate the cost, the circular said. 

 

The procurement will unfold gradually, with 10% of the total quantity to be procured in April, 45% in May, and the remaining 45% in June. "The agencies will begin procuring from Apr. 21 and Apr. 23 according to the tenders allotted. Majority of the procurement will be done when arrivals are at their highest in the next two months," the official said.

 

The procured onions will be released into the market starting August, with a phased distribution plan: 20% in August, 30% in September, 30% in October, and the remaining 20% in November. "This is a tentative plan which will be reviewed based on factors such as festive demand and market price trends, ensuring a balanced supply and stable prices throughout the period," the official said. 

 

India produces around 28-30 million tonnes of onions annually 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. Last year, the government had procured rabi onion for the price stabilisation buffer and started releasing 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. 

 

Onion prices tend to increase during the lean period of September to December 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 in prices. The current all-India average price of onion is INR 2,392 per 100 kg, down 18% on month as arrivals of the crop increase.  End

 

Edited by Vandana Hingorani

 

 

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