In a concerted effort to shield consumers from the recent surge in onion prices due to delayed kharif crop arrivals, the Indian government has initiated a comprehensive strategy aimed at offering subsidized onions at Rs. 25 per kilogram. This move adds to a series of measures devised to secure the accessibility and affordability of onions for the domestic populace, including the imposition of a Minimum Export Price (MEP) of USD 800 per metric ton. Moreover, the government has significantly bolstered buffer procurement and has been steadily facilitating onion retail sales through various channels.
Government’s Proactive Approach to Onion Prices
The Department of Consumer Affairs has launched an assertive campaign to distribute onions through a network of retail outlets and mobile vans managed by NCCF, NAFED, Kendriya Bhandar, and other state-controlled cooperatives at a highly subsidized price of Rs. 25 per kilogram. NAFED has taken the lead by setting up 329 retail points, encompassing stationary stores and mobile vans, across 55 cities spanning 21 states. Similarly, NCCF has established 457 retail points in 54 cities across 20 states. Kendriya Bhandar has commenced retail onion supplies in Delhi-NCR, and Safal Mother Dairy will soon follow suit. Meanwhile, in southern states, Hyderabad Agricultural Cooperatives Association (HACA) is overseeing the retail sale of onions to consumers.
Maintaining Onion Buffer for Price Stability
To counter seasonal price fluctuations between rabi and kharif crops, the government maintains an onion buffer. The buffer size for the current year has been increased to 7 Lakh Metric Tons (LMT), up from 2.5 LMT in the previous fiscal year. So far, 5.06 LMT of onions have been procured, and the procurement of the remaining 2 LMT is in progress.
These proactive government measures are already having a positive impact, as onion prices in the key Lasalgaon market have witnessed a 24% reduction, falling from Rs. 4,800 per quintal on 28th October 2023 to Rs. 3,650 per quintal on 3rd November 2023. This downward trend is expected to reflect in retail prices in the coming weeks, offering relief to consumers.
Similar Success in Tomato Intervention
The government has previously demonstrated the efficacy of its intervention measures when tomato prices surged due to supply disruptions caused by monsoon rains and white fly infestation. Tomatoes were procured through NCCF and NAFED from producing states like Karnataka, Andhra Pradesh, and Maharashtra and supplied at highly subsidized rates to consumers. Through these efforts, retail tomato prices were lowered from their peak of Rs. 140 per kilogram during the first week of August to approximately Rs. 40 per kilogram by the first week of September 2023.
Affordable Pulses for All Households
Recognizing the importance of pulses as a nutritional source for most Indian households, the government has introduced “Bharat Dal” at subsidized prices of Rs. 60 per kilogram for 1-kilogram packs and Rs. 55 per kilogram for 30-kilogram packs. This initiative ensures the availability and affordability of dal for ordinary households, including supply to the Army, CAPF, and welfare schemes through various cooperatives.
As of now, 3.2 LMT of Chana stock has been allocated for conversion, with over 75,000 MT milled and 59,000 MT distributed across 3,010 retail points in 282 cities. The supply of Bharat Dal is set to increase in the near future, making over 4 lakh tons of Bharat Dal accessible to consumers across the nation.
Conclusion
The government’s proactive efforts to stabilize onion prices and ensure affordable essentials like pulses are commendable. These measures not only reflect the government’s commitment to the welfare of its citizens but also demonstrate the resilience and flexibility of India’s agricultural sector in addressing supply and pricing challenges. The substantial drop in onion prices and similar success stories in the past underline the efficacy of these intervention measures and their positive impact on the daily lives of Indian consumers.