Central Government has started creating a buffer stock of 50000 tonnes of onions to check prices in the coming months in view of drought conditions in the producing states. Key onion growing states like Maharashtra, Karnataka and Andhra Pradesh are going to be under drought conditions this year. Lasalgaon, Maharashtra, the largest wholesale market in the nation has seen an increase in prices by 29%. This increase has risen the prices from Rs. 8.50/kg last year to Rs. 11/kg this year. Delhi has seen retail prices ranging from Rs. 20-25/kg depending on the varieties. "Due to drought conditions in producing regions, the production of rabi onion is expected to be lower. The likely shortfall in production may put pressure on both availability and prices during the lean season," the official told PTI.
As supply will decrease, the demand will increase, and the prices will also increase. Hence, the buffer stock is being created. The onion being stored is the Rabi Onion which is the only onion that can be stored and used later in July. Rabi Onion is 60% of the total onion production. Onion is also the highest foreign exchange earner among all vegetables and fruits. India is the second largest producer of onion in the world and a decrease in productivity would also lead to an export loss. Beside Onion, the government is also creating a buffer stock of 16.15 lakh tonne of pulses this year.
For the last financial year, the first estimate of onion production in the year 2018-2019 is expected to be higher than last financial year. The first estimate is 23.62 million tonnes compared to 23.26 million tonnes for the financial year 2017-2018.
Tags : #Onion #OnionBuffer #OnionPrice #OnionPriceRise