In a significant move to stabilize food prices, Union Minister of Consumer Affairs, Food and Public Distribution & New and Renewable Energy, Pralhad Venkatesh Joshi, launched the retail sale of onions at Rs 35 per kg.
The initiative was marked by the flagging off of mobile vans deployed by the National Cooperative Consumer’s Federation of India Ltd. (NCCF) and the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) in New Delhi on Thursday. These vans will supply onions at affordable prices in various regions, signaling the commencement of a calibrated and targeted release of the government’s onion buffer stock.
Shri Joshi emphasized the importance of keeping food inflation under control and highlighted the government’s direct interventions to stabilize prices. “Controlling food inflation is a top priority for the Government of India. Several price stabilization measures have played a key role in reducing the inflation rate in recent months,” he stated.
The government currently holds an onion buffer stock of 4.7 lakh tonnes, procured from the rabi crop. Shri Joshi explained that the Price Stabilisation Fund, initiated under the guidance of Prime Minister Shri Narendra Modi, aims to intervene in the market whenever the price of essential commodities such as onions rises sharply. The release of this buffer stock will provide relief to consumers across the country, especially in light of rising food costs.
The targeted sale of onions from the government buffer is part of a broader strategy to control food inflation and maintain stable prices. Onions will be sold through various channels, including outlets and mobile vans operated by NCCF and NAFED, as well as e-commerce platforms, Kendriya Bhandar outlets, and SAFAL stores in major consumption centers. The government will enhance and diversify these disposal channels as needed, based on trends in onion prices.
The Department of Consumer Affairs has been closely monitoring the daily prices of 38 essential commodities, including onions, at 550 centers across the country. The daily price data and comparative trends provide crucial insights for determining the quantity of onions to be released from the buffer and the specific locations where they will be sold.
This year, the government’s onion procurement has increased significantly compared to the previous year. In 2023, 3.0 lakh tonnes of onions were procured, while this year, the figure has risen to 4.7 lakh tonnes. This increase in procurement has been made possible through efforts by NCCF and NAFED, which sourced onions from farmers and farmers’ federations in key rabi onion-producing regions of Maharashtra and Madhya Pradesh. Payments to farmers have been made through direct bank transfers, ensuring transparency and efficiency in the procurement process.
An integrated system has been deployed this year to monitor the entire onion operation, including procurement, storage, and disposal. This system utilizes advanced technology to track all stages of the operation, enhancing accountability and ensuring that onions are distributed efficiently to the areas that need them the most.
The government’s proactive steps in controlling onion prices come at a critical time, as rising food inflation has impacted households across the country. By leveraging buffer stock and employing targeted disposal mechanisms, the government aims to provide relief to consumers while supporting farmers through fair procurement practices. T
his initiative demonstrates a balanced approach to addressing both inflationary pressures and agricultural sustainability, ensuring that essential commodities like onions remain accessible and affordable to all sections of society.