• The government will purchase 0.3 million tonnes (MT) of onions from farmers this fiscal under the Price Stabilization Fund (PSF), down from 0.47 MT bought in FY25. The buffer stock aims to stabilize prices during festive seasons.
• Procurement will be done by NAFED and NCCF, each expected to buy 0.15 MT at lower market prices. Cold storages near consumption hubs can store 10,000–15,000 tonnes for the buffer.
• With increased rabi arrivals and strong crop prospects, mandi prices have dropped to Rs 1,006/quintal, 36% lower than last year. Retail prices are down to Rs 25/kg, from Rs 40/kg three months ago.
• The 2024–25 rabi output is projected at 22.7 MT, an 18% rise year-on-year. The 20% export duty on onions was removed on April 1. Despite lower prices, onion inflation rose 19.435% in March due to a base effect.

Source: Financial Express