In the current year, the Government has instructed NCCF and NAFED to commence the procurement of 500,000 tonnes of onions directly from farmers for the buffer requirement, as the Rabi-2024 harvest begins to hit the market. To facilitate this procurement, NAFED and NCCF are ensuring pre-registration of onion farmers, ensuring that payments are transferred directly to their bank accounts through the Direct Benefit Transfer system.
Rabi onions play a pivotal role in the country’s onion supply, constituting 72-75% of the annual production. Notably, Rabi onions are crucial for maintaining year-round availability due to their superior shelf life compared to Kharif onions, enabling storage and supply until November-December.
Recalling the previous year’s efforts, the Department of Consumer Affairs, via NAFED and NCCF, procured approximately 6.4 million metric tonnes (LMT) of onions during 2023-24 for buffer stocking and intervention through simultaneous procurement and disposal. These continuous procurement initiatives ensured favourable prices for onion farmers throughout the year in 2023. Furthermore, retail sale interventions were undertaken by the Department of Consumer Affairs, facilitating the disposal of onions 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. This timely intervention effectively stabilised retail prices without adversely affecting farmer income.
Given the global supply scenario and the dry spell induced by El Niño, the Government implemented policy measures to regulate onion exports during the fiscal year 2023-24. These measures included a 40% duty on onion exports imposed on August 19, 2023, the imposition of a Minimum Export Price (MEP) of USD 800 per metric tonne effective from October 29, 2023, and export prohibition starting from December 8, 2023, to ensure ample availability of onions to domestic consumers at affordable prices.
The recent decision to extend the prohibition on onion exports stems from the evaluation of domestic availability vis-à-vis prevailing international prices and global availability concerns. Nonetheless, the Government has permitted onion exports to neighbouring countries dependent on India for their domestic consumption needs. Export allowances have been granted to Bhutan (550 MT), Bahrain (3,000 MT), Mauritius (1,200 MT), Bangladesh (50,000 MT), and UAE (14,400 MT, i.e., 3,600 MT per quarter).
(With inputs from PIB)
