Government's Strategic Onion Procurement Aims to Stabilize Prices Amid Production Shortfall

The government has procured nearly 71,000 tonnes of onion this year for buffer stock, targeting 5 lakh tonnes for price stabilization. With a 20% production shortfall affecting prices, various measures including export restrictions have been implemented. Price stabilization is expected as the monsoon progresses.

The government has taken a significant step by procuring nearly 71,000 tonnes of onion this year to build a buffer stock. The target is set at 5 lakh tonnes to stabilize prices amid a notable production shortfall of 20 percent.

Data from the Department of Consumer Affairs show that all-India average retail prices currently stand at Rs 38.67 per kg, with a modal price of Rs 40 per kg. This procurement pace is comparable to last year's, despite the production decline.

The government plans to manage the buffer stock dynamically to maintain price stability, even though production in key areas like Maharashtra, Karnataka, Andhra Pradesh, and Rajasthan has decreased by significant margins due to adverse weather conditions.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)