Centre procures 71,000 tonnes of onion as buffer stock

New Delhi: The Department of Consumer Affairs informed that the Centre procured around 71,000 tonnes of onion so far this year for buffer stock, while its target for the year is 5 lakh tonnes. This was done for price stabilisation, and the Centre expects retail prices to go down with the monsoon's progress across the country, PTI reported.

As per the department's data, the all-India average onion retail price stood at ₹ 38.67 per kg on Friday, while the modal price was ₹ 40 per kg.

Till June 20th, the Centre has procured 70,987 tonnes of onion, as against 74,071 tonnes procured in the same period last year, a senior official in the Department of Consumer Affairs said.

"The pace of onion procurement for price stabilisation buffer this year is largely comparable with last year, despite about 20 per cent decline in estimated rabi production," the official said, adding that the government is on course to achieve targeted procurement of 5 lakh tonnes for price stabilisation.

The official said the government will exercise the option of holding or releasing onions from the buffer in order to maintain stability in onion prices.

The procurement price is dynamic and linked to prevailing market prices.

The increase in prices of onion is on account of a shortfall in production in 2023-24 by about 20 per cent each in Kharif, late Kharif and Rabi over the previous year due to less rain in major producing areas, the official explained.

To control prices, the government has been taking measures in a graded manner since August last year, starting with an export duty of 40 per cent, followed by a Minimum Export Price (MEP) of $ 800 per tonne in October 2024 and imposition of export prohibition from December 8, 2023.

These measures have helped maintain the domestic availability of onion at reasonably stable prices.