Onion buying at market rates to boost buffer

The government will soon commence procurement of onion from farmers at market prices for creating a buffer for 2025-26 under the price stabilisation fund.

- SANDIP DAS

THE GOVERNMENT WILL soon commence procurement of onion from farmers at market prices for creating a buffer for 2025-26 under the price stabilisation fund.

Sources told FE that the target is to buy 0.3 MT of onion for the buffer which would be offloaded in the market, when prices start to spike in festive seasons.

The sources said that currently the storage facilities of shortlisted cooperative societies and farmers producer organisations (FPOs) are being checked by agencies—farmers cooperative Nafed and NCCF—for adherence to various protocols, including provision of CCTV cameras and other facilities for ensuring transparency in the procurement and storage process.

While a major chunk of onion would be purchased in Nashik, Maharashtra, purchase operations would be carried out in Pune and Ahmednagar districts along with few places in Madhya Pradesh and Gujarat.