Source, stock and transport: Centre's plan for private firms in onion logistics

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Subscribe to enjoy similar stories. New Delhi: Steep prices, rotting stocks and cartel concerns - The heartburn that comes with onion harvests every year may become a thing of the past, with the government looking to sign up private firms for efficient storage and transport of the kitchen staple to supplement its own buffer stocks. Selected companies will source and store onions from hubs in Maharashtra, Karnataka and Madhya Pradesh at a pre-agreed price, to be delivered across the country when needed, a person aware of the plans said on the condition of anonymity.

India maintains buffer stocks to stabilize prices of onion, a kitchen bulb prone to volatile prices since a quarter of the produce is lost after harvest. Currently, the stocks are maintained at warehouses run by national agriculture cooperatives. “The preparation of the terms and conditions for the tender document is nearing completion and will be released soon.

Under the tender, the responsibility for the transportation and storage of onions will rest with the selected private entity. Any failure to fulfill these obligations will result in the forfeiture of their security deposit and blacklisting from future contracts," a second person aware of the plans said on the condition of anonymity. Also read | Government to rope in Railways to rein in sky-high onion prices Onion prices have posed a headache for governments over the years, with its volatile prices figuring in election campaigns.

Prices tend to rise during August and remain elevated through October and November, coinciding with the festive season. To address this, the government begins selling onions at subsidized rates of ₹35 per kg from August or September. In 2023, the discounted onions were sold at