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27) SMART BUFFER STOCK SOLUTION

Hardware

"Background: In 2017, the government was struggling to keep prices of the essential vegetable affordable as retail prices had crossed Rs 60 per kg in Delhi. Then Union Food Minister had expressed his helplessness in controlling onion prices and blamed reduction in the area of cultivation and hoarding by traders for the shortage. The government was forced to take measures such as procuring onions from local markets and discouraging exports to bring the prices down. In order to keep a watch on the hoarders, the government has roped in various agencies to keep a check on the hoarding activities over the period of time. Also, with predictions of a ""below average"" monsoon in the year 2019, the Central government asked procurement agencies to store at least 50,000 tons of onions to ensure that market prices remain under control in case of shortage. The buffer stock would be used to control prices in case there is a shortage of onions in the market. Fluctuating weather and decreasing monsoon, causes decrease in crop (onion) output which in turn creates a demand supply gap hence leading to increase in prices or inflation. Summary: Reports from across the country indicate there has been an unnatural spike in the prices of vegetables, disrupting the carefully planned kitchen budgets of millions. An all-India survey on the retail price of vegetables like onions and tomatoes between November 18 and 28 showed that most households in big tier-1 cities forked out around Rs 100 for a kilo, while the average payout in tier-2 and tier-3 cities was Rs 80 per kg. Even the prices of sturdier staple vegetable—potato are up about 20%. Unseasonal rains all over the country have ruined vegetable crops and disrupted market operations, creating a shortage. High diesel prices too have added to the woes of consumers as they bear the increased transport costs. The crash and spurt in prices of these essential veggies has unfortunately become an acceptable cycle. For instance, last year saw a high in onion prices in September and a huge spurt again was witnessed this February on account of unseasonal rains. Then followed a sudden spurt in production by mid-March triggering a 30-40% fall in prices. In Lasalgaon, India’s onion hub, farmers were in tears as prices crashed from Rs 4,000 a quintal to a low of Rs 2,500. The government had to take last-minute measures like banning onion exports as soon as prices soar. One of the reasons prices of potatoes are relatively stable compared to other vegetables is because they use 90% of the warehousing cold storage space and do not rot easily. Similar cold chain/ storage infrastructure for other important veggies, with central support, will give better returns to farmers and provide stable prices to consumers. The more perishable onions and tomatoes can be processed and stored, as is done in many advanced countries. Objective: The Department wishes to create buffer stock of onions in the harvest season and keep the buffer stock intact with its food value, moisture and taste for at least a period of six months from date of storage. We would want the technical solution to be proposed for the following:- (a (a) Storage of onions in the traditional storage systems and warehouses available in the country. (b) Technical solutions for storage of onions in temperature controlled storage systems, warehouses."

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