"Centre Initiates Onion Procurement Today with 2 Lakh Tonne Target Set"

Government Initiates Onion Procurement to Stabilize Prices

The Indian government has taken a proactive step to address the drop in onion prices by launching a procurement process through two key cooperative bodies - the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers' Federation of India (NCCF).

Consumer Affairs Secretary Nidhi Khare has confirmed that the procurement of onions will kick off on May 15th, with a target set to acquire 2 lakh toes of onions this year. The Central Warehousing Corporation (CWC) will be responsible for storing the procured onions.

NAFED and NCCF will each procure 1 lakh toe of onions to meet the procurement target. The agencies are currently finalizing local agencies for the procurement process. Additionally, CWC has identified 20 onion storage facilities with a collective capacity of over 2 lakh toes.

Procuring agencies will only accept Grade-A onions that meet quality standards. Farmers who bring pre-sorted onions to the procurement centers will have a streamlined delivery and payment process. Payments will be made directly to their bank accounts within three days of procurement.

The minimum assured procurement price (MAPP) for onions in each state will be determined based on market prices, ensuring that farmers receive better prices than the prevailing rates. The minimum recovery rate for Grade-A onions stored for up to six months remains at 72%, ensuring fair compensation for farmers.

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