New Delhi: The central government has instructed the national Cooperative Consumer’s Federation (NCCF) and the National Agricultural Federation of India (NAFED) to procure 5 lakh tons of onions directly from farmers. This procurement aims to bolster the buffer requirement aims to bolster the buffer requirement and stabilize onion prices in the market.

Rabi onion constitutes 72-75% of the annual onion production in the country. Known for its better shelf life compared to the Kharif onion, the Rabi onion plays a crucial role in maintaining year-round onion availability, with storage capabilities extending until November-December.

The initiative builds upon previous efforts, where the Department of Consumer Affairs, through NAFED and NCCF, purchased approximately 6.4 Lakh Metric Tons (LMT) of onion during the 2023-2024 period for buffer stocking and intervention purposes. 

To manage global supply concerns, the government implemented various policy measures during FY 2023-2024. These measures included imposing a 40 percent duty on onion exports, setting a minimum Export Price (MEP) of USD 800 per Metric Ton (MT), and eventually prohibiting exports from December 8, 2023 onwards to balance domestic availability against prevailing international prices and global concerns.

However, exports to neighboring countries that depend on India for their onion requirements have been permitted. Export is being permitted to Bhutan (550 MT), Mauritius (1,200 MT), Bahrain (3,000 MT), Bangladesh (50,00 MT), and the UAE (14,400 MT, i.e., 3,600 MT per quarter).

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