Centre plans to procure 5 lakh tonnes of onions this year for buffer stock: Sources

New Delhi: The government is planning to procure 5 lakh tonnes of onions this year for its buffer stock that can be used to intervene in the market in case of a price rise, according to sources.

The food and consumer affairs ministry had created 5 lakh tonnes of buffer stock last year, of which 1 lakh tonne is still available, they added.

Agencies like NCCF and NAFED will procure onion on behalf of the government.

Sources said that the government's decision to sell onions at a subsidised rate from its buffer stock has helped in controlling prices.

The government will take a decision on lifting the ban on onion exports later this month. The ban is till March 31.

The government's plan to create buffer stock comes amid an estimated fall in onion output in 2023-24.

'Production of onion in 2023-24 is expected to be around 254.73 lakh tonnes compared to around 302.08 lakh tonnes last year due to a decrease of 34.31 lakh tonnes in Maharashtra, 9.95 lakh tonnes in Karnataka, 3.54 lakh tonnes in Andhra Pradesh and 3.12 lakh tonnes in Rajasthan,' the agriculture ministry said in a statement on Thursday.

The decline in onion production in 2023-24 is 16 per cent compared to the previous year.

As per the data, onion production stood at 316.87 lakh tonnes in 2021-22.