Department of Consumer Affairs procures 5.06 LMT onion for disposal through e-sales, e-Nam auction and bulk sale.
The Government has initiated aggressive retail sale of onion from the buffer at subsidised price of Rs 25 per kg to protect the consumers from recent increase in onion prices due to delay in the arrival of kharif crop. This comes as another measure in addition to the slew of measures put in place to ensure availability and affordability of onion to domestic consumers such as, imposition of Minimum Export Price (MEP) of USD 800 per MT with effect from 29th October, 2023, enhancement of buffer procurement by 2 lakh tons, over above 5.06 lakh tons already procured, and the continuous disposal of onion through retail sales, e-Nam auction and bulk sales in wholesale markets from second week of August.
The Department of Consumer Affairs has started aggressive disposal of onion through retail outlets and mobile vans operated by NCCF, NAFED, Kendriya Bhandar and other State controlled cooperatives at subsidised price of Rs 25 per kg. Till 2nd November, NAFED has set up 329 retail points, consisting of stationary outlets and mobile vans, in 55 cities across 21 states. Similarly, NCCF has set up 457 retail points in 54 cities across 20 states. Kendriya Bhandar too, has started retail supply of onion through its retail outlets across Delhi-NCR from 3rd November, 2023 and Safal Mother Dairy will start from this weekend. The retail sale of onion to consumers in Telangana and other southern states are being taken up by Hyderabad Agricultural Cooperatives Association (HACA).
In order to control the seasonal price volatility between rabi and kharif crops the Government maintains onion buffer by procuring rabi onion for subsequent calibrated and targeted release. This year, the buffer size has been raised to 7 LMT from 2.5 LMT in 2022-23. Till date 5.06 LMT of onion has been procured and the procurement of balance 2 LMT is in progress.
The proactive measures taken by the Government has started showing result as onion prices in benchmark Lasalgaon market declined from Rs.4,800/qtl on 28.102023 to Rs.3,650/qtl on 03.11.2023, a decline of 24 per cent. Retail prices are expected to show similar decline from the coming week.
