Government Directive on Onion Procurement for Buffer Stock

Summary and Important Points:

1. Procurement Directive

• Agencies Involved: NCCF and NAFED.

• Quantity: 5 lakh tonnes of onion.

• Purpose: For buffer requirement, directly from farmers.

2. Rabi Onion Significance

• Contribution: Accounts for 72-75% of the annual onion production in India.

• Advantage: Better shelf life, ensuring year-round availability.

3. Previous Year's Procurement

• Quantity: Approximately 6.4 LMT (Lakh Metric Tonnes) in 2023-24.

• Purpose: Buffer stocking and price stabilization measures.

4. Retail Sale Intervention

• Methods: Sale through retail outlets and mobile vans at subsidized prices.

• Impact: Stabilized retail prices and ensured farmer remuneration.

5. Export Regulations

• Measures: Imposition of duty, Minimum Export Price (MEP), and export prohibition.

• Reason: To ensure domestic availability and affordability.

6. Special Export Allowances

• Countries: Bhutan, Bahrain, Mauritius, Bangladesh, and UAE.

• Quantities: Specific allocations for each country.

Additional Information

• NCCF: National Cooperative Consumers' Federation of India Limited.

• NAFED: National Agricultural Cooperative Marketing Federation of India Limited.

• Direct Benefit Transfer (DBT): Ensures quick and direct payment to farmers' bank accounts.

Examination Perspective and Concise Points for Use

• Agricultural Economics: Importance of government intervention in agricultural markets.

• Food Security: Role of buffer stocks in ensuring year-round availability and price stabilization.

• Trade Policies: Impact of export regulations on domestic availability and international relations.

Key Words to Remember

• Onion Procurement

• Buffer Stock

• Rabi Onion

• Export Regulation

• Price Stabilization

Link to Article : Press Information Bureau a(pib.gov.in)

Released On : 26 March 2024