The Indian government has acquired approximately 0.45 million tonnes of onion from producers at prevailing market rates for the current financial year, with an aim of reaching a 0.5 million tonnes target. This procurement effort, managed by agencies like Nafed and the National Cooperative Consumers' Federation of India, has seen onions bought at an average price of Rs 25/kg, a noticeable increase from the Rs 17/kg rate in the previous fiscal year.
Authorities are contemplating strategies for the optimal use of the onion buffer, which may include timed releases to ensure price stability in the market. With the onset of kharif onion sowing in major cultivation states such as Karnataka, Maharashtra, and Madhya Pradesh, aided by favourable monsoon conditions, the government is on track to meet its procurement objectives.
The set target for kharif onion cultivation area stands at 0.36 million hectares, marking a 27% increase from the previous year's 0.28 million hectares. The previous fiscal year saw the government purchasing 0.64 million tonnes of onion, which were later sold at a subsidized rate of Rs 25/kg, a move that helped stabilize retail prices without affecting farmer profits.
Current retail onion prices hover around Rs 40/kg, with expectations of a decrease in the near future. Retail inflation for onions has been in double digits since July 2023, with a 36.71% year-on-year increase recorded in July. Wholesale prices in Lasalgaon, Nashik, a key onion market, are presently between Rs 2,500 and 3,000 per 100 kg, up from Rs 1,500 to 2,000 three months ago.
[ Rs 100 = €1.10 ]
Source: financialexpress.com