The Ministry of Consumer Affairs claimed that the onion prices in the country are now cheaper than the previous its efforts. The government has released more than 50% of the buffer stock of 2.08 lakh tonnes onion in the market.

Onion prices had started rising from the first week of October, 2021, due to rains that disrupted the supply chain. “In order to cool down prices, the Department of Consumer Affairs has taken up calibrated and targeted release of onions from the buffer on First-in-First-Out (FIFO) principle, guided by the twin objectives of moderating prices and ensuring minimal storage loss,” said the Department of Consumer Affairs in a release.

“Prices of onion are cheaper than last year. Onion prices are being stabilised through Buffer stock operations. Efforts of Centre to ease Onion Prices bearing results,” said the Ministry.

“As a result of these steps, the All India retail prices of onion on November 3 is Rs 40.42 per kg while the All India wholesale price of Onion is Rs 32.50/kg,” it added.

Till November 2, 2021, a total of 1.11 lakh tonne of onion has been released in major markets such as Delhi, Kolkata, Lucknow, Patna, Ranchi, Guwahati, Bhubaneshwar, Hyderabad, Bangalore, Chennai, Mumbai, Chandigarh, Kochi and Raipur. In addition, onions are disposed of in local markets in Maharashtra, Madhya Pradesh and Gujarat.

Apart from releasing in the market, the Department of Consumer Affairs has offered onions from the buffer at Rs.21/kg to all the States and UTs for lifting from the storage locations. This would enable States/UTs to take up, by themselves, market interventions either through direct supply to retail consumers through retail outlets or release in key markets to bring down prices. “The stocks are also available for supply to Central/States agencies involved in retail marketing either at ex-storage rate of Rs.21/kg or at landed price after including transportation costs. SAFAL has been offered at landed price of Rs.26/kg and has lifted 400 tonnes. Nagaland is being supplied from the buffer,” said the release.

Onion buffer has been maintained by the Department of Consumer Affairs under the Price Stabilization Fund (PSF) with the objective of market intervention to moderate prices. “In 2021-22, against the target of building 2 lakh tonnes of onion buffer stock, a total of 2.08 lakh tonnes was procured from Rabi-2021 crop during April to July, 2021,” informed the Department.