New Delhi, May 13 -- New Delhi: In a bid to tame recurring onion price shocks and improve farmer incomes, the Centre is working on a plan to help states locally procure and scientifically store the politically-sensitive crop in the producing regions, two people aware of the matter said. The strategy aims to cut wastage, reduce transport dependence on key producing states such as Maharashtra and create buffer stocks closer to demand centres to avert price spikes that stoke food inflation.

Under the proposed framework for the world's second-largest onion producer, states would be encouraged to procure onions directly from local farmers and maintain buffer stocks through state warehousing corporations and other storage agencies, the people ...