The Department of Consumer Affairs has embarked on a crucial initiative to ease onion prices and ensure consumer accessibility by initiating the release of a significant stockpile from the onion buffer. In a move aimed at curbing escalating retail prices and fostering price stability, the department has undertaken strategic discussions and collaborations with key stakeholders. This decisive action is a response to the current market conditions where onion prices have surged above the national average, raising concerns about affordability and availability for consumers.
Mr. Rohit Kumar Singh, the Secretary of the Department of Consumer Affairs, led a pivotal meeting with the Managing Directors of the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers’ Federation (NCCF) on August 10, 2023. The meeting culminated in the finalization of a comprehensive plan to facilitate the systematic release of the onion stocks. The objective is to target specific markets within states or regions that exhibit retail price trends surpassing the national average. Additionally, regions witnessing noteworthy month-on-month and year-on-year price escalations beyond a predetermined threshold are also earmarked for priority stock release.
To ensure a transparent and efficient distribution process, the department is actively exploring avenues such as e-auctions and retail sales through established e-commerce platforms. This progressive approach not only enhances accessibility but also promotes fair market practices. The quantification and pace of stock release will be closely aligned with prevailing market dynamics, with a clear emphasis on stabilizing prices and meeting consumer demand.
The strategic release plan encompasses multifaceted strategies, including the provision of discounted rates to states for sales through their consumer cooperatives and corporations. This collaborative effort between the central government and the states serves as a pivotal step towards ensuring a wider reach and greater affordability of onions.
The procurement of onions for the buffer has been a robust endeavor in the current year, with a staggering 3.00 lakh metric tonnes amassed for the stockpile. The buffer’s scale can be augmented if market conditions necessitate further reinforcement. The combined efforts of NAFED and NCCF have contributed equally to this procurement, each acquiring 1.50 lakh metric tonnes of rabi onions during June and July. Notably, an innovative approach has been implemented to minimize storage losses. Collaborating with the Bhabha Atomic Research Centre (BARC), the department has undertaken a pilot project for irradiating onions. This pioneering technique has been applied to approximately 1,000 metric tonnes of onions, which have been meticulously preserved in controlled atmosphere storage facilities.
The government’s steadfast commitment to mitigating onion price volatility has been underscored by the consistent maintenance of the onion buffer under the Price Stabilisation Fund. This proactive measure ensures that onion availability remains consistent, particularly during lean seasons. Over the years, the size of the onion buffer has witnessed a remarkable expansion, tripling from 1.00 lakh metric tonnes in 2020-21 to an impressive 3.00 lakh metric tonnes in the ongoing fiscal year of 2023-24. This strategic augmentation of the buffer has played a pivotal role in stabilizing onion prices and securing a steady supply, thereby shielding consumers from abrupt and unsustainable price hikes.
