New Delhi. The government has stepped up its efforts to curb onion prices by increasing sales from ‘buffer stock’ in wholesale markets in view of the surge in retail prices after the recent removal of export duty. Consumer Affairs Secretary Nidhi Khare said on Monday that the Center has started releasing onions from its ‘buffer stock’ in wholesale markets of Delhi and other major cities. The government plans to retail subsidized onions across the country. Khare told reporters here, “We expected a surge in prices after the removal of export duty. With our ‘buffer stock’ of 4.7 lakh tonnes and increased area for Kharif sowing, we hope that onion prices will remain under control. “
The government is planning to increase the retail sale of onion at a subsidised rate of Rs 35 per kg across India, with a focus on cities where prices are higher than the national average. According to official data, the retail price of onion in Delhi on September 22 was Rs 55 per kg, up from Rs 38 per kg in the same period a year ago. In Mumbai and Chennai, prices have reached Rs 58 and Rs 60 per kg, respectively.
The government has been selling onions at Rs 35 per kg since September 5 through mobile vans and shops of National Cooperative Consumers Federation of India (NCCF) and National Agricultural Cooperative Marketing Federation of India (NAFED) in Delhi and other state capitals. Khare has high hopes from the upcoming Kharif onion crop. For this, he cited much higher acreage compared to last year. He said, “Arrivals will start next month and we do not see any concern regarding production.” The secretary also spoke about the prices of other commodities.
Regarding edible oils, he acknowledged the price hike after the recent import duty hike and said the move was taken to protect domestic farmers. Regarding tomatoes, Khare said the government will monitor the trends and intervene if needed. With domestic tur and urad production being good and pulses imports increasing, Khare expects stability in pulses prices in the coming months. The government had removed the minimum export price of $550 per tonne on onions 10 days ago, while increasing import duty on crude palm oil by 20 per cent and refined sunflower oil by 32.5 per cent with the aim to support domestic oilseed farmers and processors.
