India’s National Agricultural Cooperative Marketing Federation (NAFED) and National Cooperative Consumers’ Federation (NCCF) have procured around 110,000 tons of onions for market intervention, with stocks being released as retail prices remain elevated in several markets.

Around 3,200 tons of NAFED onions have been dispatched so far, according to NAFED Joint Managing Director Anand Mohan. The onions are being sold at around US$0.39 per kg, compared with prevailing market prices of approximately US$0.50-US$0.72 per kg.

Stocks are being transported by road and rail to cities including Chennai, Delhi, Kolkata, Guwahati, Chandigarh, Jammu, Patna, Lucknow, and Varanasi. Releases are expected to continue through the festival season.

NAFED is distributing onions through around 50-60 mobile vans, its online portal, and retail channels. The cooperative is also discussing distribution through online delivery platforms, although pricing remains under discussion.

Mohan said procurement and releases are intended to balance consumer and grower prices. Market prices and modal rates are monitored weekly, with procurement conducted to provide stocks for intervention when retail prices increase.

Storage recovery is another focus. NAFED’s minimum recovery level for stored onions is around 72 per cent. Mohan said some losses are expected because onions are perishable, while onions suitable for sale are segregated during storage and release.

NAFED and the Central Warehousing Corporation use scientific storage methods, while further storage technology is under consideration. Mohan said more advanced systems need to be assessed against their additional cost per kilogram.

NAFED has also expanded its retail operations beyond commodities covered by government intervention programs. Its portfolio now includes more than 100 products, not all of which are subsidised.

The organization is targeting retail turnover above US$11 million, compared with around US$4.6 million last year.