The Indian Government has mandated the National Cooperative Consumer's Federation of India (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED) to procure 500,000 tons of onion from farmers as the rabi-2024 harvest begins to enter the market. This procurement aims to bolster the country's onion buffer stock, with NAFED and NCCF pre-registering farmers to facilitate payment through direct benefit transfer (DBT), according to the Ministry of Consumer Affairs, Food & Public Distribution.
Rabi onions, accounting for 72-75% of the country's annual production, are essential for ensuring a consistent supply due to their longer shelf life. In response to a global supply constraint and a dry spell from El Niño, India has implemented export regulations, including a 40% export duty and a minimum export price (MEP) of USD 800 per MT, alongside a temporary export ban to maintain domestic affordability. However, exceptions have been made for exports to neighboring countries dependent on India for their onion supply.
Source: agriculturepost.com