India: 9,000 MT buffer stock to prevent onion shortage
The Union government has released Rs 50 million ($786,000 USD) for the procurement process which is being done though central agencies like National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) and Small Farmers' Agribusiness Consortium (SFAC) under the Price Stability Fund (PCF). The Centre aims to procure 10,000 tonnes of onions by July 10.
Speaking to TOI, Pravesh Sharma, managing director of SFAC, said: "We have set a target of creating buffer stock of 10,000 tonnes of onions to tackle any scarcity in near future. We have already procured 6,500 metric tonnes directly from mandis (agriculture produce market committees) in Lasalgaon and Pimpalgaon APMCs in Nashik district and also Indore district. We will be procuring around 3,500 metric tonnes by July 10. The average price at which we have bought the commodity is around Rs 17 to 18 per kilogram."
When contacted, an executive from NAFED said, "We have procured 2,500 metric tonnes of onions so far from Lasalgaon and Pimpalgaon APMCs. We have two godowns at Lasalgaon with a joint storing capacity of 2,500 tonnes of onions. The onions have been procured at an average rate of Rs 17 per kilogram."
The onions which are currently available in the market were harvested between March and April (summer crop) and have a shelf life of around six months. They last till the fresh kharif crop arrives by September-end. The scarcity is created if this cycle is affected. Hence, August to October is a crucial period with chance of scarcity at its peak. This contributes to spike in prices of the commodity.
The Centre has made a provision of Rs 500 crore under PSF to control onion and potato prices. The PSF is to be used to advance interest free loans to state governments and central agencies like NAFED and SFAC, to buy onions directly from farmers or at the Agriculture Produce Market Committees (APMCs) considering possibility of the scarcity of onions and rise in prices in future. Initially, the scheme is to be implemented for the current financial year 2015-16 and next financial year 2016-17 for onion and potato commodities.
Source: indiatimes.com
