To halt the current spike in onion prices, cooperative Nafed has offloaded 20,000 tons of onions from the government's reserves in the last three weeks across India. Onions are then sold at "going market rates" in major cities like Delhi, Patna, Lucknow, Chandigarh, Chennai and Hyderabad among others.
Nafed has been creating a buffer stock of onion on behalf of the government under the Price Stabilisation Fund (PSF) for the last few years. For 2022-23, Nafed has built a record onion reserve of 250,000 tons to deal with a potential spike in onion prices during the lean season that runs from August to December.
Sources claim that Nafed commenced the disposal of buffer onion on September 14 and has offloaded 20,000 tons since.