.jpg "Why Onion Prices Are Rising: Causes and Solutions")
Estimated reading time: 1 minute
In an unprecedented move, the government has raised the onion buffer to 5.00 lakh metric tonnes this year, surpassing the initial target of 3.00 lakh metric tonnes. The Department of Consumer Affairs has directed NCCF and NAFED to each procure 1.00 lakh tonnes to achieve the additional target and ensure controlled distribution in major consumption centers.
Onion disposal from the buffer has begun, prioritizing markets with prices exceeding the national average or significantly higher than the previous month. Approximately 1,400 MT of buffer onions have already been dispatched to these markets to enhance availability.
Additionally, buffer onions will be sold to retail consumers at a subsidized rate of Rs. 25/- per kg through NCCF’s outlets and mobile vans starting from Monday, August 21, 2023. Retail sales will be expanded through various agencies and e-commerce platforms in the coming days.
The government’s comprehensive approach, including buffer procurement, targeted distribution, and export duty imposition, aims to ensure equitable benefits for farmers and consumers. This strategy supports fair prices for onion farmers while maintaining affordable access for consumers.
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