Page 563 - ES 2020-21_Volume-1-2 [28-01-21]

190 Economic Survey 2020-21 Volume 2

5. States/UTs are also being encouraged to set up their own State level PSF. Till date,
financial assistance has been provided to Odisha, West Bengal, Andhra Pradesh,
Telangana, Tamil Nadu and Assam.
6. Government of India has entered into a MoU with Mozambique to ensure assured supply
of pulses (Tur and other pulses) in India. The MoU envisages imports of 2 LMT pulses
during 2020-21.

7. Pulses from the PSF buffer are also being utilized for free supplies under PMGKAY and
ANB package. This has helped in ensuring food security during the challenging times of
COVID-19.
8. Government of India maintains buffer stocks of onion under PSF for making appropriate
price stabilizing market interventions. Onion from buffer stock is released in a calibrated
manner through retail intervention to retail agencies/State/UTs and open market sale
during lean season/period to contain prices and availability. Buffer stock of about 1 LMT
created from Rabi 2020 onion is released in a calibrated manner to moderate prices of
onion since September 2020. The Government also conveyed approval for procurement
of 1 LMT onion Kharif 2020-21. Analysis on onion price seasonality and effective policy
measures is discussed in Box 4.

Box 4: Onion prices and buffer stock policy

Over the years, it has been observed that in the period August-November prices of onion sky-
rocket. This happens despite the government efforts to create a buffer stock to sell the onion
when retail prices increase, exposing the absence of a suitable policy to ensure price stability
of India’s staple vegetable.

Retail prices of onion (2015-2020)

Source: PMC, DCA