In a move aimed at curbing the effects of soaring food prices, the National Cooperative Consumers' Federation of India Limited (NCCF) has initiated the sale of subsidized onions in Delhi, beginning today. To counter high food inflation and alleviate the strain on consumers' wallets, onions will be offered at a rate of ₹25 per kg.
The government, in a press release issued on Sunday, announced plans to gradually expand the retail distribution of these subsidized onions. Not only will major markets be included, but the government also intends to leverage e-commerce platforms and other agencies for wider distribution.
Effective from today, August 21st, 2023, these subsidized onions will be made available through various channels, including retail outlets and mobile vans operated by NCCF.
In an unexpected move, the government has taken steps to bolster the onion buffer stock, raising it to an impressive 5 lakh metric tonnes this year. This decision comes on the heels of successfully achieving the initial procurement target of 3 lakh metric tonnes.
The Department of Consumer Affairs, following this announcement, has mandated NCCF and the National Agricultural Cooperative Marketing Federation of India (NAFED) to procure 1.00 lakh tonnes each. This directive is aimed at meeting the extended procurement target, accompanied by a strategic disposal of the procured stocks in key consumption centers.
The press release also highlighted the ongoing process of disposing of the buffer stock. These efforts are concentrated on regions where retail prices exceed the national average or have shown significant increases compared to the previous month. As of now, roughly 1,400 MT of onions from the buffer stock have already been dispatched to these targeted markets.
The government's comprehensive approach to the onion situation involves multifaceted strategies, including buffer stock procurement, stock release plans, and the imposition of export duties. These measures are anticipated to not only benefit farmers but also provide respite to consumers by ensuring a consistent supply of onions at reasonable prices.