India Takes Measures to Prevent Onion Scarcity - India's Strategic Move to Secure Onion Supply

India’s Strategic Move to Secure Onion Supply Enhanced Buffer Stocks and Market Interventions to Stabilize Prices

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Strengthening India’s Onion Supply: Government’s Proactive Measures

Procurement of Kharif Onions and Expansion of Buffer Stock

The Indian Government has embarked on a significant initiative to enhance the country’s onion supply by procuring 25,000 tonnes from the 2023 Kharif season, as per the announcement by Consumer Affairs Secretary Rohit Kumar Singh. This action is a part of the government’s strategy to establish a substantial buffer stock. The objective is to intervene in the market when necessary, ensuring a consistent supply and controlling price volatility.

Setting a new precedent, the government has targeted an ambitious buffer stock of 0.7 million tonnes for the 2023-24 fiscal year. This figure is a substantial increase from the 0.3 million tonnes buffer stock of the previous year.

Secretary Singh elaborated on the government’s procurement plans, stating that in addition to the 0.5 tonnes acquired from the previous Rabi season, efforts are underway to purchase an additional 0.2 million tonnes of Kharif onions. This is in line with the government’s increased buffer stock target. He informed PTI that about 25,000 tonnes of Kharif onions have already been procured from various mandis, and the procurement process is still ongoing.

Market Intervention and Price Stabilization Efforts

Subheading: Government Actions Lead to Price Reduction and Export Ban

In a strategic move to regulate market prices, the government has released 0.3 million tonnes of onions from the existing 0.5 million tonnes Rabi onion buffer stock. The distribution, managed by cooperative bodies Nafed and NCCF, has led to a substantial decrease in the all-India average retail price of onions. Over a span of just over a month, the price has fallen by 27.58%, now standing at USD 0,50 per kg.

Moreover, in an attempt to curb sudden spikes in retail prices, the government has imposed a ban on onion exports until March 31. This measure is expected to further contribute to the stabilization of onion prices in the domestic market. By implementing these measures, the government aims to protect consumer interests and ensure the steady availability of this essential commodity.

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