Govt raises onion buffer stock target for 2023-24 to 3 lakh tonne

New Delhi [India], April 5 : The central government will maintain 3 lakh tonne onion in the 2023-24 season as buffer stock, Union food minister Piyush Goyal informed Parliament On Wednesday.

In 2022-23, the government maintained 2.51 lakh tonne onion as buffer stock.

The buffer stock is maintained to meet any exigencies and for price stabilisation, if rates go up significantly during the lean supply season.

Minister Goyal's response was in reply to a question by a parliamentarian about the remedial measures being taken by the government to stabilise/reduce the prices of essential food items to protect the interests of the common people.

"...in order to stabilise the volatility in prices of onion, the Government procured a record 2.51 lakh metric tonnes of onions from Rabi-2022 crop under Price Stabilisation Fund (PSF) and released it in major consumption centres during September 2022 and January 2023," Goyal said in his written reply.

"For the current year (FY 2023-24), the procurement of Rabi-2023 onion has been increased to 3.00 lakh metric tonnes," he added.

Rabi onion harvested during April - June accounts for 65 per cent of India's onion production and meets the consumer's demand till the Kharif crop is harvested in October-November.

The procured stocks are usually released through targeted open market sales and also to states and Union territories and government agencies for supplies through retail outlets during the lean supply season.

Government data showed average retail onion prices in India in 2020, 2021, and 2022 were Rs 35.88, Rs 32.52, and Rs 28.00 per kilogram.