In response to a significant 57 percent increase in the average retail price of onions across India to Rs 47 per kilogram, the government has decided to enhance the distribution of buffer onions at a subsidized rate of Rs 25 per kilogram in retail markets. This move comes as per reports by the news agency PTI.
As per data maintained by the Ministry of Consumer Affairs, the nationwide average retail price of onions has surged from Rs 30 per kilogram during the same period in the previous year. In the capital city, the retail price of onions has reached Rs 40 per kilogram on the same date, compared to Rs 30 per kilogram in the preceding year.
Rohit Kumar Singh, Secretary of Consumer Affairs, informed the news agency that buffer onions have been introduced into the market since mid-August, and the government is intensifying its retail distribution to counteract further price escalations and provide relief to consumers.
The ministry has conveyed that buffer onions are being disseminated in both wholesale and retail markets in states where prices have seen significant escalation. Since mid-August, around 1.7 lakh tonnes of buffer onions have been made available in 22 states at various locations.
In retail markets, buffer onions are being provided at the subsidized rate of Rs 25 per kilogram through the involvement of two cooperative organizations, namely the National Cooperative Consumers' Federation (NCCF) and the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED). The PTI report has added that buffer onions are also accessible at this reduced rate in Delhi.
A senior ministry official has conveyed to PTI that delayed kharif onion sowing, influenced by adverse weather conditions, has resulted in reduced coverage and delayed crop arrivals. Kharif onions should have already made their way into the market, but their arrival has been postponed.
As the stored rabi onions are depleting and kharif onions are delayed, the supply situation has tightened, which has led to price hikes in both wholesale and retail markets.
The official has also highlighted that the government has doubled the buffer onion stock for the current year, with expectations of enhancing domestic availability and stabilizing prices in the near future.
For the fiscal year 2023-24, the Ministry of Consumer Affairs has maintained a buffer onion stock of 5 lakh tonnes through NCCF and NAFED. There are plans to procure an additional 2 lakh tonnes of onions in the coming days.
