BOOSTING ONION’S SHELF LIFE

29th May, 2024 Economy

Disclaimer: Copyright infringement not intended.

Context

The Union government plans to significantly increase the irradiation of onions in the current financial year to enhance the shelf life of its buffer stock.

Purpose of Irradiation

Preservation: Irradiation with low, regulated doses of radiation prevents sprouting in onions, thereby extending their shelf life.
Health Safety: This irradiation process poses no health risk to consumers.

Scaling Up Plans

Previous Year's Activity: Only 1200 tonnes of onions were irradiated last year.
Current Target: The government aims to increase irradiation to one lakh tonnes this year.
Buffer Stock Procurement: The goal is to procure a total of five lakh tonnes of onions in 2024-25 for the buffer stock, compared to 6.46 lakh tonnes in the previous financial year.

Implementation Strategy

Agencies Involved: The Department of Consumer Affairs has tasked the National Consumers’ Cooperative Federation (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED) with identifying 50 centres for onion procurement and irradiation.
Benefits: Irradiation will enhance the shelf life of onions, ensuring their availability over an extended period.

Shift in Storage Location

Previous Approach: Historically, onion stocks were maintained near production hubs like Lasalgaon in Maharashtra's Nashik.
Current Strategy: The plan is to stock onions closer to consumption centres to reduce travel time. Additionally, controlled atmosphere storage near major railheads is being considered.

Procurement and Buffer Stock Management

Price Stabilisation Fund: Onion procurements are conducted under this fund, aimed at building up the country's buffer stock of essential food commodities and releasing stocks in the market during price spikes.

Export Policy

Lifting of Ban: The Centre lifted the ban on onion exports on May 4, 2024, which had been in place since December 8, 2023.
Export Conditions: Exports are subject to a minimum export price of $550 per metric tonne and a 40% duty. India has exported approximately 45,000 tonnes of onions since the ban lift.

Addressing Post-Harvest Losses

Perishability Challenge: Onions are highly perishable, leading to significant post-harvest losses, which can reach up to 40%.
Irradiation Solution: Increasing use of irradiation helps prevent sprouting and extend onion shelf life.
Regulation and Costs: Irradiated food in India is regulated under the Atomic Energy (Control of Irradiation of Food) Rules, 1996. The costs of irradiation range from ₹0.5 to ₹1.0 per kg for low-dose applications, such as sprout inhibition in onions.

National Consumers’ Cooperative Federation (NCCF)

NCCF was established on 16^thOctober, 1965 to function as the apex body of consumer cooperatives in the country. It is registered under the Multi-State Co-operative Societies Act, 2002. It operates through a network of 26 Branch Offices located in different parts of the country. NCCF Headquarters is situated in New Delhi. NCCF, as an organisation to promote consumer cooperative movement in the country, aspires to facilitate the voluntary formation and democratic functioning of cooperatives, based on self-reliance and mutual aid for overall economic betterment and financial autonomy.

National Agricultural Cooperative Marketing Federation of India Ltd (NAFED)

Established in 1958, the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) is a key organization facilitating the trade of agricultural produce nationwide. Registered under the Multi-State Co-operative Societies Act, NAFED has become one of India's largest procurement and marketing agencies for agricultural products, headquartered in New Delhi. NAFED spearheads price stabilization measures, including "Operation Greens," aimed at doubling farmers' income by 2022. It collaborates with entities like the Food Corporation of India (FCI) to procure oilseeds, pulses, and copra through the Price Support Scheme (PSS) under PM-AASHA. Additionally, NAFED established the National Spot Exchange in 2008 in partnership with Financial Technologies (India) Ltd.

Note: National Spot Exchange

The National Spot Exchange Limited (NSEL) is India's first spot exchange. It was set up in 2008 by 63 Moons Technologies to create a single market for buying and selling goods, both agricultural and manufactured, across India. Before NSEL, there were recommendations from different groups like the Government's Economic Survey and the Rangarajan Committee to create a national-level market for agricultural products. Finally, in 2007, the Indian government gave NSEL and two other exchanges permission to start operations.

NSEL started its electronic trading platform in October 2008. Six state governments also gave it licenses to operate under their Agricultural Produce Market Committees (APMC) Acts.

In 2011, the Forward Markets Commission (FMC) was put in charge of regulating spot exchanges like NSEL. This was a big step for NSEL's development.

MORE ON NAFED: https://www.iasgyan.in/daily-current-affairs/talks-with-farmers-on-crop-diversification-proposal#:~:text=India%20Ltd%20(NAFED)-,The%20National%20Agricultural%20Cooperative%20Marketing%20Federation%20of%20India%20Ltd%20(NAFED,for%20agricultural%20produce%20in%20India.&text=NAFED%20was%20established%20on%20the,agricultural%20produce%20to%20benefit%20farmers.