Govt directs NCCF and NAFED to initiate procurement of 5 lakh tonnes of onion 

Rabi onion is critical for the country’s onion availability as it contributes 72 -75 per cent of annual production in the country

In the current year, the Government has directed NCCF and NAFED to initiate procurement of 5 lakh tonnes of onion for the buffer requirement directly from the farmers as the Rabi-2024 harvest started arriving in the market. For the procurement, NAFED and NCCF are to pre-register the onion farmers to ensure that payments to the farmers are transferred to their bank accounts through Direct Benefit Transfer.

Rabi onion is critical for the country’s onion availability as it contributes 72 -75 per cent of annual production in the country. The Rabi onion is also crucial for ensuring year-round availability of onion as it has a better shelf life compared to Kharif onion and can be stored for supplies till November- December.

It may be recalled that the Department of Consumer Affairs had, through NAFED and NCCF, purchased about 6.4 LMT of Onion during 2023-24 for the buffer stocking as well as intervention by way of simultaneous procurement and disposal. The continuous procurements by the NAFED and NCCF have guaranteed remunerative prices for onion farmers all through the year 2023. Subsequently, the Department of Consumer Affairs adopted retail sale intervention for the disposal of onion through retail outlets and mobile vans operated by NCCF, NAFED, Kendriya Bhandar and other State controlled cooperatives at a subsidised price of Rs.25 per kg last year. The timely intervention and calibrated release ensured the stabilisation of retail prices effectively without impacting farmer realisation.