‘Onion buffer plan curbs price swings’

A new evaluation of the Centre's onion buffer programme has found that the Price Stabilization Fund (PSF) has been able to significantly cut retail price swings of the vegetable and raise farmer incomes.

- Vijay C. Roy & Dhirendra Kumar

The Centre procures about 300,000 tonnes of onions every year under PSF, ascheme meant to curb price volatility of essential farm commodities such as onion, potatoes, and pulses, for distribution at below market price.

The study, conducted by the Department of Consumer Affairs in collaboration with Arcus Policy Research, shows that retail price volatility of onions dropped 24% while consumer prices stayed 36-45% below market rates during disposal months of August to December, even though PSF procures barely 1-2% of the national output.