The move is aimed at building buffer stock as well as supporting farmers in case market prices crash amid an indefinite export ban being in place, Rohit Kumar Singh, consumer affairs secretary, said on Tuesday.

As part of the plan, procuring agencies Nafed and NCCF will both purchase 250,000 tonnes rabi onion each directly from farmers.

“The idea behind the early procurement is to protect farmers’ interest so that they are paid the right price for their produce amid a ban on onion export,” Singh said.

The Department of Consumer Affairs (DoCA) had, through these two agencies, purchased about 640,000 tonnes of onion out of the targeted 700,000 tonnes during 2023-24 for buffer stock as well as to keep prices in check by simultaneous procurement and disposal of the staple bulb.

Rabi onion is critical for availability of the vegetable, as it accounts for 72-75% of annual production in the country. The rabi or winter variety of onion is also crucial for ensuring year-round availability of onion as it has a better shelf life compared to the kharif variety and can be stored for supplies till November-December.

Global supply scenario and dry spell induced by the El Niño weather phenomenon had prompted the government to take policy measures to regulate onion exports during the 2023-24 financial year. India imposed a ban on onion exports in December, which was extended on Saturday until further orders, after a 40% export duty and a minimum export price of $800 per tonne in August failed to subdue prices amid lower production. The development came as the government’s priority is to protect the interest of domestic consumers ahead of general elections. “The move has ensured availability of onions to the domestic consumers at affordable prices,” Singh added.

Onion output in the 2023-24 crop year may fall 15.6% to 25.4 million tonnes (mt) as key growing regions received poor rainfall, the agriculture ministry estimated earlier this month. Production of rabi onion this year is estimated to be 19.3 mt, against last season’s 23.6 mt.

According to an official statement, the decision to extend the ban on onion export has been necessitated in view of the overall domestic availability against the prevailing international prices and global availability concerns. The government, however, has allowed exports to neighboring countries that rely on India for their domestic consumption requirements. India has allowed the export of onion to Bhutan (550 tonnes), Bahrain (3,000 tonnes), Mauritius (1,200 tonnes), Bangladesh (50,000 tonnes) and UAE (14,400 tonnes).

Nafed and NCCF will pre-register the onion farmers to ensure that payments are directly transferred to their bank accounts.

The regular procurements have guaranteed remunerative prices for onion farmers all through the previous calander year. Also, sale of onion through retail outlets and mobile vans operated by NCCF, Nafed, Kendriya Bhandar and other state-controlled co-operatives at a subsidized rate of ₹25 per kg kept prices in check, the government said.

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Published: 26 Mar 2024, 10:42 PM IST