Thursday, 18 March 2021

Govt is preplanning to purchase 2 lakh tonnes of onions for buffer stock


As the onion prices high and govt worried about the onion prices and stock onion in market. As we have seen from last few years every time onion prices highlighted in India. Now govt planning to double the buffer stock of onions to overcome the fluctuations in the prices of the retail market which will ever increase the gap between the demand and supply of onions. The government of India is preplanning to purchase 2 lakh tonnes of onions for buffer stock in for current year 2021-22 to curb rising prices and ensure easy availability during the festive season when supplies are tight. Onion is in demand in all parts of the country, while it is cultivated only in limited areas.

There are many challenges regarding the storage of onions. Preparations are being made to deal with them. The storage will be undertaken by the private sector companies along with the Central Warehousing Corporation (CWC). Storage of perishable crops such as onions is quite challenging. Special cold storage are made for this. There is a dire need for private investment in this sector. A special incentive scheme has been prepared in this regard.

The Govt of India has allocated some Rs 2,700 crore in current year2021-22 for the Price Stabilization Fund (PSF) used to purchase buffer stock of onions and pulses for consumption because India is at top in consumption of Onion and pulses.  This is 35% more than the budgetary allocation of 2020-21. If this planning will work than we have not to face a prices' fluctuation in the market. 

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