In the Delhi-NCR region, the prices of onions have witnessed a substantial surge, resulting in significant concerns for households across India. This price escalation has occurred over the past two weeks and despite the government's efforts to intervene and stabilize the situation.
As of October 29, the nationwide average retail price for onions now hovers at nearly Rs 48 per kilogram, with the maximum retail price reaching a staggering Rs 83 per kilogram. This surge in onion prices has been most pronounced in the Delhi-NCR region, where they have reached an alarming Rs 80 per kilogram in retail markets. Notably, this represents a staggering 100 percent increase in just 14-15 days.
While the government has undertaken initiatives to make subsidized onions available at Rs 25 per kilogram, the surge continues unabated. Delhi, in particular, has been hit hardest by this surge, but other states have also witnessed significant price increases, as per government data.
Several factors have converged to drive this rapid surge in onion prices in the Delhi-NCR region, including both a production shortfall and heightened demand during the festive season. As a result, prices have skyrocketed to the range of Rs 65-80 per kilogram in physical retail markets, with similar rates prevalent on online platforms.
An authoritative government source revealed that the delayed sowing of kharif onions, primarily due to adverse weather conditions, has led to reduced cultivation and delayed crop arrivals. This delay in kharif onion cultivation appears to be the primary driver behind the substantial increases in both wholesale and retail prices.
Unfortunately, it is expected that onion prices will remain at elevated levels for at least two more months, extending into December, as the supply of kharif onions eventually reaches the wholesale markets. The future trajectory of prices will also depend on the government's continued efforts to make onions available at subsidized rates, especially in regions with high onion consumption.
To mitigate the situation, Rohit Kumar Singh, the Consumer Affairs Secretary, has disclosed that buffer onions have been released into the market since mid-August. The government is intensifying its retail distribution efforts to curb further price hikes and provide relief to consumers. To date, approximately 1.7 lakh tonnes of buffer onions have been supplied to 22 states at various locations since mid-August.
These buffer onions are being offered at a subsidized rate of Rs 25 per kilogram through two cooperative organizations: the National Cooperative Consumers' Federation (NCCF) and the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED). Delhi is among the regions where these buffer onions are accessible at a reduced rate.
The Ministry of Consumer Affairs, in collaboration with NCCF and NAFED, is maintaining a buffer onion stock of 5 lakh tonnes for the fiscal year 2023-24 and has plans to procure an additional 2 lakh tonnes of onions in the days to come. These initiatives are geared towards stabilizing the onion market and ensuring an adequate supply to consumers.
