Centre to begin onion procurement today, 2 lakh tonne target set, Pg5

Key Highlights:

• The Centre will begin procuring onions for price stabilization on May 15 with a target of 2 lakh tonnes.
• NAFED and NCCF will each procure 1 lakh tonne of onions.
• The Central Warehousing Corporation (CWC) will handle onion storage.
• Payments to farmers will be made within three days of procurement through e-Samridhi portals.

Detailed Insights:

• This procurement aims to stabilize onion prices amidst a drop in the crop's market value.
• NAFED and NCCF are finalizing local agencies for procurement, while CWC has identified storage godowns with over 2 lakh tonnes capacity.
• Onion farmers delivering pre-sorted, Grade-A quality onions will have an easier stock delivery and acceptance process.
• The Minimum Assured Procurement Price (MAPP) will be based on the average of maximum and modal prices in major state mandis over the previous three days.
• The minimum recovery rate for Grade-A onions stored for up to six months is fixed at 72%, the same as last year.

Key Concepts Involved:

• NAFED: National Agricultural Cooperative Marketing Federation of India, an apex organization for agricultural cooperatives in India.
• NCCF: National Cooperative Consumers’ Federation of India, an apex body of consumer cooperatives in India.
• Minimum Assured Procurement Price (MAPP): A price mechanism to ensure farmers receive better prices than prevailing market rates.