Nafed buys 95,000 tonnes of onions from farmers to create buffer stock
India’s National Federation of Agricultural Cooperative Marketing (Nafed) said on Sunday it had purchased 95,000 tonnes of onions directly from farmers at going rates to create a buffer stock on behalf of the government.
Last year, Nafed purchased a total of 57,000 tonnes of onions from the Rabi (winter) 2018-19 harvest under the Price Stabilization Fund (PSF). The objective this time is to buy 1 lakh of tons of staple foods for the kitchen of the main producing states.
“We have purchased 95,000 tonnes of onions for buffer stock so far. We will reach the target of 1 lakh tonne in the next 2-3 days,” Nafed Additional general manager SK Singh told PTI. .
Onions grown in Rabi (winter) culture can be stored and have a long shelf life compared to that grown in Kharif season.
Rabi onions were purchased largely in Maharashtra, Madhya Pradesh and Gujarat through agricultural producer organizations (FPOs) and cooperative societies as well as direct buying centers, he said. .
Singh also said: “The onions were bought at an average price of 10-11 rupees per kg.”
The cooperative added its own operational storage capacity for onions in Maharashtra and Madhya Pradesh of 30,000 tonnes, with support from state governments.
Last month, Nafed approached state governments to send their lean month-ahead demands to ensure a swift evacuation of the onion stored in a planned manner to have a salutary effect on retail prices, which tend to increase from late August to November. .
This will help reduce storage losses, as long storage life results in a 35 percent higher storage loss, which is compounded due to adverse weather conditions as reported last year. Besides the onion, Nafed obtains legumes for the buffer stock.
Business Standard has always strived to provide up-to-date information and commentary on developments that matter to you and have broader political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these difficult times resulting from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative views and cutting-edge commentary on relevant current issues. However, we have a demand.
As we fight the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of providing you with even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.