NCCF procures 2,826 tonnes onion from farmers for buffer stock; to scale up buying in coming days

In a move to provide succour to the people grappling with skyrocketing prices of Onion, the centre has increased the onion buffer stock target from 3 lakh tonnes to 5 lakh tonnes this year. The task of procuring 1 lakh tonnes each, directly from farmers at the rate of Rs 2,410 per quintal, has been assigned to two cooperatives - NCCF and NAFED. This strategy is designed to prevent hasty sales caused by market panic, especially as export restrictions have been put in place to manage domestic prices. In addition to this effort, the two cooperatives are actively distributing the government’s onion buffer stock in both wholesale and retail markets. This intervention aims to rein in the escalating retail costs of onions, which presently hover around Rs 60 per kilogram in various cities, including Delhi, with prices contingent on the quality of the produce. Speaking with PTI, NCCF Managing Director Anice Joseph Chandra said the cooperative commenced the procurement directly from farmers on August 22 in both Maharashtra and Madhya Pradesh. Around 12-13 procurement centres have been opened in Maharashtra and more will be set up depending on the demand. “In the last four days, we purchased about 2,826 tonnes of onion mostly from Maharashtra. The target is to buy 1 lakh tonnes and we may procure more,” she said. NCCF is procuring onion directly from farmers at Rs 2410 per quintal, which is higher than the prevailing wholesale rate of Rs 1900-2000 per quintal, she added. In order to boost domestic availability and check rising retail prices, Joseph Chandra said NCCF is also selling the buffer onion stock in 11 states and union territory where prices are increasing and so far 6,450 tonnes of onion has been sold in the wholesale markets at the current mandi rates. The 11 states and union territory include Delhi, Andhra Pradesh, Telangana, Odisha, Assam, Kerala, Tamil Nadu, Karnataka, Punjab, and West Bengal, she added. “We are retailing the onion buffer stock both through physical and e-auction mode to bring greater transparency. The first e-auction of onion was done on August 25 in Delhi-NCR and 36 tonnes were sold,” Joseph Chandra said. This will be replicated in two cities of Punjab in the coming days, she said and added that the cooperative is also trying to wholesale onion through NCDFI and Bhim portals. On the retail front, NCCF said it has already started selling onions in Delhi-NCR and Hyderabad on a limited scale. This will be scaled up in the coming week. “Onions are being sold at a subsidised rate of Rs 25/kg without quantitative restrictions,” she added. On August 19, the government imposed a 40 per cent export duty on onions to restrict outward shipments and boost local availability amid apprehension about the Kharif output. With inputs from PTI.