Page 565 - ES 2020-21_Volume-1-2 [28-01-21]

192 Economic Survey 2020-21 Volume 2

Distribution of onion stock

Source: NAFED
* dispatch to state government and local market under process
NAFED stores its buffer stock of onion using traditional methods, as opposed to cold storage,
leading to the wastage. As per the data, every year almost 100 per cent of the stock procured
is stored in traditional and conventionally designed storage facilities, in 2020, approximately
15 per cent of the stocks are stored in modern and equipped storage facilities as popularised
by National Horticultural Research and Development Foundation (NHRDF). The wastages
are further aggravated due to the adverse weather conditions like untimely rainfall and excess
moisture.

Moreover, NAFED procures and stores onion mostly in three states- Maharashtra, Madhya
Pradesh and Gujarat. This concentration of stock storage in just three states makes it more
susceptible to adverse weather shocks. Moreover, this doesn’t allow for immediate action
when needed, in fact delays it. A decentralised system of procurement and storage with proper
tracking can make the system more robust.

Suggestions
1. NAFED approached state governments to send their requirements of lean months
in advance to ensure timely evacuation of the stored onion in a planned manner to
have a salutary effect on retail prices, which tend to go up in the period late August to
November. However, this process could be made more transparent and done further
well in advance to ensure timely distribution.
2. There should be a transparent online platform where all information relating to
requirement details by states, procurement undertaken state wise and month wise,
amount disbursed state wise, agency wise, month wise should be made available for
better planning and decision making.