Exclusive: Government chalks out strategy to control onion prices, ensure fair rate for farmers

The government is preparing a roadmap to ensure that the market price of onion remains under control and also farmers get the fair price for their produce, sources from the Ministry of Consumer Affairs, Food and Public Distribution told Zee Business.

The government is taking inputs from the mandis/wholesale vegetable market for preparing a complete roadmap for the same, said the sources.

Sources confirmed that additional onion procurement centres will be set up and the government will buy more onions. The ministry has started inter-departmental discussions to decide the complete plan of procurement for every crop.

Currently, the National Agricultural Cooperative Marketing Federation of India Ltd.(NAFED) buys around 200 MTs of red onions from Nashik and sends it to Delhi. The Consumer Affairs Department has directed NAFED to purchase Kharif season onions in and around Nashik, revealed the sources. Thus, onions will be sent from here to other areas where the price or consumption is high.

The government has so far maintained a buffer stock of 2.5 lakh metric tonne (LMT) in the financial year 2022-23, in case needed for market intervention.

Owing to the perishable nature of the crop and the gap between rabi and kharif crops, onion prices often rise during the months of September to December. Thus, the government is working on a plan for the preparation of the first procurement based on season and supply for each crop in the future.

Ministry of Consumer Affairs, Food and Public Distribution said in statement recently said that states and Union Territories had been offered onion at Rs 21 per kg ex-storage locations and Safal outlets had also been supplied Rs 26 per kg inclusive of transportation cost.

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