New Delhi, Dec. 12 -- A new evaluation of the Centre's onion buffer programme has found that the Price Stabilisation Fund (PSF) has been able to significantly reduce retail price volatility of the vegetable and improve farmer incomes.

The government procures about 300,000 tonnes of onions every year under PSF, a scheme meant to curb price volatility of essential farm commodities such as onion, potatoes, and pulses, for distribution at below market price.

The study, conducted by the Department of Consumer Affairs in collaboration with Arcus Policy Research, shows that retail price volatility of onions dropped 24% while consumer prices stayed 36-45% below prevailing market rates during disposal months of August to December, even though PS...