Lok Sabha Question No. 2579 (UNSTARRED), answered on 2024-12-11
Subject: Corruption in Onion Procurement
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Shri Raja Ram Singh

## Government of India

## Ministry of Consumer Affairs, Food and Public Distribution Department of Consumer Affairs

## LOK SABHA UNSTARRED QUESTION NO. 2579

TO BE ANSWERED ON 11.12.2024

## CORRUPTION IN ONION PROCUREMENT

## 2579.   SHRI RAJA RAM SINGH:

## Will  the  Minister  of CONSUMER  AFFAIRS,  FOOD  AND  PUBLIC  DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k jkT; ea=h be pleased to state:

- (a) whether  the  Government  is  cognizant  of  the  report  of  allegations  of  corruption  in  the  onion procurement  process  by  the  National  Agricultural  Cooperative  Marketing  Federation  of  India (NAFED) and National Cooperative Consumers' Federation of India;
- (b) if so, the action taken by the Ministry against the NAFED and NCCF;
- (c) whether  the  Government  has  received  complaints  by  Farmers  Associations  against  NAFED  and NFCC  for  not  purchasing  the  onions  directly  from  farmers  and  if  so,  details  of  the  complaints received including the action taken thereon;
- (d) whether  the Government  was  consulted  by  certain other  departments in its probe against irregularities in NAFED's onion procurement and if so, the details thereof; and
- (e) whether the Government has conducted an audit of NAFED's onion procurement practices and if so, the details thereof and if not, the reasons therefor?

## ANSWER

## miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k jkT; ea=h (श्री बी.एल. वर्मा )

## THE MINISTER OF STATE CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI B.L.VERMA)

(a) to (e ) :  To look into allegations of irregularities in the procurement of onions under Price Stabilisation Fund (PSF) by National Agricultural Cooperative Marketing Federation of India (NAFED), the Department of Agriculture & Farmers Welfare (DAFW) constituted a fact finding Committee. DAFW, vide OM dated 4 th November, 2024, conveyed the suggestions that concerned district administration should be involved in the procurement process to ensure transparency and local oversight, to adopt biometric based verification of farmers, and payment to registered farmers bank account through AADHAR Enabled Payment system.

Onions for PSF buffer are procured by NAFED and National Cooperative Consumers' Federation of India (NCCF) from farmers through Farmer Producer Organisations (FPOs)/ Farmer Producer Companies (FPCs), wherein payments for the procured onions are transferred directly to the farmers' bank accounts. In order  to  streamline  the  procurement  of  onions,  the  Department  of  Consumer  Affairs  engaged  third  party agency to develop digital procurement support and information system. Through the system, procurement, storage and disposal of onions are being monitored.

In  order to  tackle the volatility in  prices,  the  government maintains buffer stock onion for market interventions through calibrated and targeted release to moderate the prices in the market. A total of 4.70 lakh  tonnes  of  onions  from  rabi-2024  crop    has  been  procured.  Onion  from  the  buffer  are  released  in  a calibrated and targeted manner to moderate prices in high price consuming centres at wholesale markets and through  retail  outlets.  Onions  are  distributed  among  retail  consumers  at  Rs.35  per  kg  through  stationary retail outlets and mobile vans in major consumption centres. These measures have helped in making onion available to consumers at affordable prices and also in stabilising the prices .

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