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Informist, Wednesday, Apr. 30, 2025

 

--Govt official: To stock 10,000-12,000 tonnes onion for Delhi

--Govt official: Onion stocks for Delhi to ensure swift supply Aug-Nov

--CONTEXT: Onion prices usually rise in Aug-Nov as supply dwindles

 

By Pallavi Singhal

 

NEW DELHI – To ensure swift supply and stabilise prices of onions in the national capital, the Centre is building a stockpile of 10,000-12,000 tonnes only for Delhi, according to a senior government official. This stock for Delhi would be carved out of the total procurement target of 300,000 tonnes for 2025-26 (Apr-Mar).

 

"We have already passed tenders for it and received bids for storage of this quantum. While we wanted to store at least 30,000 tonnes in and around Delhi, we realise private trade has not ramped up storage to this extent," the official said. However, according to the official, the quantum should be enough to keep prices low for 2-3 months. 

 

"We plan on distributing procured onions via stores such as Safal. Pan-Delhi, Safal stores need about 60 tonnes of onions a day. Thus, 10,000 tonnes should be more than enough to sustain the market," official said.

 

The government will also sell subsidised onions in states such as Uttar Pradesh, Bihar, West Bengal, Haryana, and Punjab to keep pices of the commodity contained. 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. Kharif arrivals of onion start in November. 

 

The consumer affairs ministry has set a procurement target for buffer stocks at 300,000 tonnes for the current year ending March, sharply lower from the last year's procurement of 470,000 tonnes. The step has been taken on the back of estimates of higher production in the country. 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. 

 

The ministry started onion procurement for the buffer stock from Apr. 25. Procurement is being done by two central agencies--National Cooperative Consumers' Federation of India Ltd. and National Agricultural Cooperative Marketing Federation of India Ltd. The procurement has been planned to unfold gradually, with 10% of the total quantity to be procured in April, 45% in May, and the remaining 45% in June.

 

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 as much as 470,000 tonnes of 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 2,209.7 per 100 kg, down 9% on year, due to higher supply.  End

 

Edited by Akul Nishant Akhoury

 

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