Buffer stock sale and additional procurement to further keep prices under control
The government of India’s decision to impose a Minimum Export Price of US$ 800 per Metric Ton on onions with effect from October 29, 2023, till December 31, 2023, to discourage exports and maintain availability in domestic markets has shown an immediate impact of price correction in Maharashtra markets, where prices recorded a decline of 5 to 9 per cent from the highest price registered during last week. The weighted average price of onion in Maharashtra across all the markets has declined by 4.5 per cent and a similar decline was observed in consumption centres as well.
The Department of Consumer Affairs is monitoring onion exports and prices daily to ensure stable domestic prices and availability to consumers. Given the increasing demand in November, the Department has started releasing onion buffer stock into the market both through mandi sales and discounted sales to retail consumers at centres of high prices. This includes retail sales through 685 Mobile retail outlets covering over 170 cities. National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) and the National Cooperative Consumers’ Federation of India (NCCF) have also started procuring additional 2 Lakh Metric Tons (LMT) onion of kharif harvest to be distributed in high-price centres to keep the onion prices under control and consumers interest is protected.