A few days ago, it was estimated that onion production might be reduced. On the other hand, after the removal of export duties, onion prices have risen again. In view of this, the government has initiated measures. The government has now talked about releasing buffer stocks in the market and has talked about selling onions at Rs 35 per kg across the country.
According to government data, the average price of onion in Delhi has reached Rs 58 per kg. Which was Rs 55 on the last working day of last month. While on September 23, onion prices were Rs 38 per kg. This means that onion prices have seen a 53 percent increase in the last one year. Let us also tell you what kind of measures the government is going to take to control onion prices.
The government is eliminating onion buffer stocks
In view of the rise in retail prices following the recent removal of export duties, the government has stepped up its efforts to curb onion prices by increasing sales from buffer stocks in wholesale markets. Consumer Affairs Secretary Nidhi Khare on Monday said the Centre has started withdrawing onions from its buffer stocks in wholesale markets in Delhi and other major cities. The government plans to sell subsidised onions across the country. Khare said after the removal of export duties we were expecting a rise in prices. With our buffer stock of 4.7 lakh tonnes and increased Kharif sowing area, we are hopeful that onion prices will remain under control.
read this too
It plans to sell nationwide for Rs 35.
The government is planning to increase retail sales of onion across India at a subsidised price of Rs 35 per kg. In this, more attention is being paid to those cities where prices are higher than the national average. According to official data, the retail price of onion in Delhi on September 23 was Rs 58 per kg, up from Rs 38 per kg in the same period last year. Prices in Mumbai and Chennai have touched Rs 58 and Rs 60 per kg respectively. The government will sell onions at a price of Rs 35 per kg from September 5 through mobile vans and shops of the National Consumer Cooperative Federation of India (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED) in Delhi and other state capitals.
Will onion production increase or decrease?
Khare has high hopes for the upcoming Kharif onion crop. For this he cited much more acreage than last year. He said that the arrivals will start next month and we do not see any production-related concerns. While on Saturday, the advance estimates related to horticulture were revealed. In which it was said that due to low production in major zones of the country, onion production is likely to decline by 19.76 per cent to 24.24 million tonnes in the financial year 2023-24. Now it will be interesting to see which direction the onion prices go in the coming days.
Oil prices rise for legumes
The secretary also spoke about the prices of other commodities. On edible oils, he accepted the price hike following the recent increase in import duty and said that this step has been taken for the security of domestic farmers. On tomatoes, Khare said that the government will keep an eye on the trends and intervene if necessary. With good domestic production of pigeon pea and urad and an increase in pulse imports, Khare expects pulse prices to remain stable in the coming months. Ten days ago, the government removed the minimum export price of $550 per tonne of onions, while increasing import duty on crude palm oil to 20 per cent and refined sunflower oil to 32.5 per cent, with an aim to support domestic oilseed farmers and processors.
