Government took steps to control rising onion prices, sales increased from buffer stock

New Delhi| The government has recently increased sales from ‘‘buffer stock’ in wholesale markets in view of rising onion prices in the retail market after the removal of export duty. This decision has been taken with the aim of curbing prices. Consumer Affairs Secretary Nidhi Khare on Monday said the Center has started withdrawing onions from its ‘buffer stock’ (reserves) in the wholesale markets of Delhi and other major cities. The government plans to retail onions with subsidies across the country.

Khare told reporters on Monday, ‘‘, after the removal of export duty, we were expecting a rise in prices. With our ‘buffer stock’ of 4.7 lakh tonnes and increased kharif sowing area we expect onion prices to remain under control.’’  The government is planning to increase retail sales of onions at a discounted rate of Rs 35 per kg across India. In these, more attention is being given to those cities where prices are higher than the national average.

According to official figures, 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. Prices in Mumbai and Chennai have reached Rs 58 and Rs 60 per kg respectively.

The government has been selling onions at the rate of Rs 35 per kg since September 5 through mobile vans and shops of the National Cooperative Consumer Federation of India (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED) in Delhi and other state capitals.

Khare has high expectations from the upcoming Kharif onion crop. For this he cited a much higher area than last year. He said, ‘‘ arrivals will start next month and we do not see any production concerns. ’’

The Secretary also talked about the prices of other commodities. Regarding edible oils, he acknowledged the increase in prices after the recent increase in import duty and said that this step has been taken for the safety of domestic farmers.

Regarding tomatoes, Khare said that the government will keep an eye on the trends and intervene if needed. Khare expects stability in pulses prices in the coming months with good domestic pigeon pea and urad production and increase in pulses imports.