Government instructs NCCF and NAFED to purchase 500,000 tonnes of onions directly from farmers

The government has directed NCCF and NAFED to procure 5 lakh tonnes of onions directly from farmers as Rabi-2024 harvest begins. This move aims to ensure buffer stock and stable prices for consumers. Rabi onions are crucial due to their longer shelf life and higher production contribution.

Rabi onions contribute 72-75% of annual onion production in India and play a key role in maintaining year-round availability. Previous procurements by NAFED and NCCF have provided farmers with remunerative prices and ensured stable retail prices for consumers.

Policy measures, such as export duties and prohibitions, were implemented in response to global supply concerns and domestic availability issues. The recent extension of export prohibition aims to prioritize domestic needs over international demand.

While onion exports are restricted, neighboring countries like Bhutan, Bahrain, Mauritius, Bangladesh, and the UAE have been allowed limited quantities to meet their domestic requirements. This decision balances domestic needs with international commitments and ensures strategic stockpile management.

The government’s efforts to support onion farmers, regulate domestic prices, and manage international trade reflect its commitment to maintaining food security and stability in the onion market. The procurement of Rabi onions directly from farmers is a proactive step towards ensuring sufficient buffer stock for future needs.