Indian government may procure 50% more onions in FY22

The Indian government might go ahead and procure 50 percent more onions from farmers in 2021-22 to try and control the spike in prices; these can go up to Rs 100 per kg (€1.10) during the festival season. To curb these, the government wants to create a buffer stock of 150,000 tonnes of the kitchen staple.

This means that from April onwards, the government will start procuring onions through the National Agricultural Cooperative Marketing Federation of India (Nafed).

"[The] onion harvests hit the markets twice, once in April and then in November. There is generally a short supply of onions in the markets from August to November, when prices spike. There is a need for more buffer quantity to contain price hike," an official stated. "The shelf-life of winter onions is more than the summer crop, which is harvested in November. So, we buy during April-July.”

In FY21, the government had doubled the stock size to 100,000 tonnes but was unable to keep a check on prices.

Source: moneycontrol.com


Photo source: Dreamstime.com


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