New Delhi: In response to rising onion prices following the recent removal of export duty, the Indian government has initiated measures to control the situation. With average prices reaching ₹58 per kg in Delhi—up from ₹55 last month and ₹38 a year ago—the government plans to offload buffer stock to sell onions at a subsidised rate of ₹35 per kg across the country.
Consumer Affairs Secretary Nidhi Khare announced on Monday that the Centre has begun withdrawing onions from its buffer stock in wholesale markets in Delhi and other major cities. With a buffer stock of 470,000 tonnes and increased sowing in the kharif season, the government remains optimistic about keeping onion prices manageable.
The surge in retail prices, which have seen an increase of 53 percent over the past year, has prompted the government to focus particularly on cities where prices exceed the national average. Current prices in Mumbai and Chennai are reported at ₹58 and ₹60 per kg, respectively.
Since September 5, the government has been distributing subsidised onions through mobile vans and National Cooperative Consumer Federation of India (NCCF) shops in Delhi and other state capitals. Khare expressed hope for the upcoming kharif onion crop, citing a significant increase in acreage compared to last year.
“Arrivals will start next month, and we don’t anticipate any production concerns,” Khare stated. However, advance estimates reveal a potential 19.76 percent decline in onion production this financial year, dropping to approximately 24.24 million tonnes due to lower yields in key growing regions.
In addition to onion prices, Khare acknowledged rising prices of edible oils following a recent increase in import duties, aimed at supporting domestic farmers. Regarding tomatoes, he indicated that the government will monitor market trends and intervene if necessary. With good domestic production of tur and urad pulses, and increased imports, Khare expects stability in pulse prices in the coming months.
As the situation unfolds, all eyes will be on onion prices and the government’s strategies to ensure affordability for consumers.