New Delhi: With the hike in prices of vegetables, the Centre on Wednesday said that it has so far released a total of 1.11 lakh tonnes of onion from its buffer stock in major markets of the country in order to ease the retail prices by Rs5-12 per kg.
The buffer onion stock was released in major markets in places such as Delhi, Kolkata, Lucknow, Patna, Ranchi, Guwahati, Bhubaneshwar, Hyderabad, Bengaluru, Chennai, Mumbai, Chandigarh, Kochi, and Raipur.
The local markets of Maharashtra, Madhya Pradesh, and Gujarat also witnessed the Grade-B onions being disposed of. The consumer affairs ministry in a statement said, “Onion prices are being also stabilised through buffer stock….Efforts of the Centre to ease onion prices is now bearing results.”
Onion prices are now cheaper than last year as the average all India retail price of the key kitchen staple is ruling at Rs 40.13 per kg, while in the wholesale market it is at Rs 31.15 per kg, it said. Nearly 1,11,376.17 tonnes of onion from the buffer stock were in major markets till November 2.
Retail prices of Onion in various states
According to the ministry data, the intervention has helped to stabilise the retail prices by Rs 5-12 per kg so far. For instance in Delhi, retail onion prices have fallen to Rs 44 per kg on November 3 from the high of Rs 49 on October 20. In Mumbai, onion prices have declined to Rs 45 from the high of Rs 50 per kg on October 14. In Kolkata, the retail price of onion dropped to Rs 45 from Rs 57 per kg on October 17, while in Chennai it declined to Rs 37 from Rs 42 per kg on October 13, the data showed.
The onion prices had started seeing a hike in their prices from the first week of October due to the rains that interrupted the supply chain, as per the ministry.
Role of government to cool down the prices
In order to bring down the prices, the government has taken up calibrated and targeted release of onions from the buffer stock on the first-in-first-out (FIFO) principle, guided by the twin objectives of moderating prices and ensuring minimal storage loss.
The government has also offered buffer onion stocks at Rs 21 per kg to all states and union territories for lifting from the storage locations. This would enable states, the union territories to take up by themselves market interventions either through direct supply to retail consumers through the retail outlets or release in key markets to bring down prices.
The Ministry said, “The stocks are also available for supply to Central/States agencies involved in retail marketing either at ex-storage rate of Rs 21/kg or at landed price after including transportation costs.” Mother Dairy’s Safal has been offered onion at a price of Rs 26 per kg and it has lifted 400 tonnes. Buffer onion stock has also been supplied to Nagaland.
Onion buffer has been maintained under the Price Stabilisation Fund (PSF) with the objective of effective market intervention to moderate prices. A total of 2.08 lakh tonnes of onion had been procured for buffer during 2021-22, slightly higher than the target of 2 lakh tonnes, it added.
