Centre Procures 71,000 Tonnes Of Onions To Stabilise Prices - Details
centre procures 71,000 tonnes of onions to stabilise prices - details
The Indian government has procured nearly 71,000 tonnes of onions this year for buffer stock, with the aim of stabilising prices amid a targeted procurement of 500,000 tonnes. According to the Department of Consumer Affairs, the average retail price of onions across India was Rs 38.67 per kilogram on Friday, while the modal price stood at Rs 40 per kilogram.
As of June 20th, the Centre had procured 70,987 tonnes of onions, slightly less than the 74,071 tonnes procured by the same time last year. Despite an estimated 20% decline in rabi onion production, procurement this year is progressing at a comparable pace to last year, according to a senior official from the Department of Consumer Affairs. The government remains confident in meeting its procurement target of 500,000 tonnes to stabilise prices.
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The procurement price is dynamic, linked to prevailing market prices. This year’s increase in onion prices is attributed to a production shortfall of around 20% across Kharif, late Kharif, and Rabi seasons, due to insufficient rainfall in major producing regions. To control prices, the government has implemented several measures since August last year, including a 40% export duty, a Minimum Export Price (MEP) of USD 800 per tonne in October 2024, and an export prohibition starting December 8, 2023.
These measures have helped maintain a stable domestic supply of onions. However, the export prohibition was lifted on May 4, 2024, with a revised MEP of USD 550 per tonne and a 40% export duty, reflecting improved stability in major markets such as Lasalgaon in Maharashtra and the prospect of good Kharif production, bolstered by predictions of an above-normal monsoon this year.
The current heatwave across large parts of India has affected the production of green vegetables, leading to increased prices for vegetables including tomatoes, potatoes, and onions. The situation is expected to improve with the onset of the monsoon across most parts of the country.
In March, the Union Agriculture Ministry released data indicating that onion production for 2023-24 (First Advance Estimates) is expected to be around 254.73 lakh tonnes, down from approximately 302.08 lakh tonnes the previous year. This decline includes a significant reduction in output from Maharashtra (34.31 lakh tonnes), Karnataka (9.95 lakh tonnes), Andhra Pradesh (3.54 lakh tonnes), and Rajasthan (3.12 lakh tonnes).
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The government plans to manage the buffer stock strategically, either holding or releasing onions to maintain price stability.
(With Inputs From PTI Agency)