With the all-India average retail onions price surging by 57 percent to INR 47 per kilogram, the government has made the decision to increase the distribution of buffer onions in retail markets at a subsidized rate of INR 25 per kilogram. This move aims to alleviate the burden on consumers. According to data from the consumer affairs ministry, the nationwide average retail price of onions climbed from INR 30 per kilogram in the same period last year to INR 47 per kilogram on Friday.
In the capital city, the retail price of onions reached INR 40 per kilogram on Friday, marking a significant increase from INR 30 per kilogram in the same period last year, as indicated by the data.
Fluctuating Onions Sales and Prices:
“We have been offloading buffer onions since mid-August and we are stepping up the retail sale in order to check further rise in prices and provide relief to the consumers,” stated Consumer Affairs Secretary Rohit Kumar Singh.
As per the ministry’s report, buffer onions are being distributed in wholesale and retail markets across states where there has been a significant price surge. From mid-August, approximately 1.7 lakh tonnes of buffer onions have been distributed in 22 different locations within these states.
Buffer onions are being distributed in retail markets through two cooperative entities, namely NCCF and NAFED outlets and vehicles, at a reduced price of INR 25 per kilogram. This subsidized rate is also applicable in Delhi for buffer onion sales.
According to a senior official from the ministry, the delay in kharif onion sowing, caused by adverse weather conditions, has led to reduced cultivation and a delayed arrival of the crop.
The new kharif onion harvest should have commenced at this point, but it hasn’t. As the stored rabi onion stock depletes and the kharif onion arrival is delayed, the supply situation has become constrained. This has led to price hikes in both wholesale and retail markets, as explained by the official.
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He also noted that the government has increased the buffer onion stock for the current year by twofold, which is expected to enhance domestic availability and help stabilize prices in the near future.
For the fiscal year 2023-24, the consumer affairs ministry, in collaboration with NCCF and NAFED, has upheld a buffer onion stock of 5 lakh tonnes and intends to secure an additional 2 lakh tonnes of onions in the forthcoming days.
