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NEW DELHI – The government has set a target of procuring 200,000 tonnes of onion for 2026-27 (Apr-Mar) for its buffer stock under the Price Stabilisation Fund, according to an official memorandum dated Mar. 27 seen by Informist. The decision was taken by the Committee of Ministers reviewing prices and availability of essential commodities, the Department of Consumer Affairs said.

 

The procurement will be carried out equally by the National Agricultural Cooperative Marketing Federation of India Ltd. and the National Cooperative Consumers' Federation of India Ltd. Each agency has been tasked with procuring 100,000 tonne. They have been directed to start preparing for procurement from the current rabi crop.

 

The onion buffer is maintained under the Price Stabilisation Fund to enable timely market intervention and check price volatility, particularly during the lean supply period between September and November. Procurement strategy has varied in recent years depending on supply conditions and price trends. In 2024-25, the government had procured 470,000 tonnes of onion for its buffer stock. It began releasing the stock from early September to cool prices. In contrast, procurement was scaled down to 300,000 tonnes the following year, when supplies were relatively comfortable.

 

Operations last year also began only in July--nearly two months behind schedule--because of operational issues faced by the procurement agencies.

 

India produces around 28 million–30 million tonnes of onion annually. The country is among the world's largest producers of the crop. Rabi onion accounts for nearly 75% of the country's total onion output.  End

 

Edited by Rajeev Pai

 

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