The government might procure 50 percent more onions from farmers in 2021-22 to check the spike in prices, which can rise to Rs 100 per kg during the festival season.
The government wants to create a buffer stock of 150,000 tonnes of the kitchen staple, The Economic Times reported.
From April, the government will start procuring onions through the National Agricultural Cooperative Marketing Federation of India (Nafed), the report said.
"Onion harvest hits markets twice, once in April and then in November. There is generally a short supply of onions in the markets from August to November, when prices spike. There is a need for more buffer quantity to contain price hike," a food ministry official told the paper.
"The shelf-life of winter onions is more than the summer crop, which is harvested in November. So, we buy during April-July," the official said.
Moneycontrol could not independently verify the story.
In FY21, the government had doubled the stock size to 100,000 tonnes but was unable to keep a check on prices, The Economic Times reported.
Onion prices saw a massive spike in October 2020, reaching as high as Rs 100 for a kg in some markets after damage to the crop hurt supply.
The Centre lifted a ban on onion exports with effect from January 1, 2021. The ban was imposed for more than three months to ensure adequate stock for the domestic market.
Source:-moneycontrol.com