New Delhi — In a promising development for consumers, onion prices are anticipated to cool down further with the arrival of the new kharif crop, according to a senior official from the Ministry of Consumer Affairs. Currently, the average all-India retail price of onion stands at Rs 54 per kg, down from previous high levels, thanks in part to the government's intervention through subsidized sales in key markets. The government holds a buffer stock of 4.5 lakh tonnes of onion, of which 1.5 lakh tonnes have already been sold off to help manage pricing pressures. In a bid to provide relief to consumers, the buffer stock onions are being sold at a subsidized rate of Rs 35 per kg in the Delhi-NCR region and other major cities.
For the first time, the government is utilizing rail transport to distribute buffer stock onions to key consuming centers, a move that is expected to significantly boost supply. "We will continue with the bulk rail transportation of buffer onion until we exhaust our stock and prices stabilize," the official stated. In recent weeks, approximately 4,850 tonnes of onions have been dispatched via rail to major markets, including Delhi, Chennai, and Guwahati, with the Delhi market receiving the bulk of the shipments at 3,170 tonnes.
Another shipment of 730 tonnes, facilitated by the cooperative Nafed, is expected to arrive in Delhi soon, adding to the available supply and potentially easing prices further. The official noted that there was a brief spike in onion prices over the past two days due to market closures and labor shortages related to the festival season; however, conditions are now improving. With expectations of increased production in the upcoming season, the outlook for onion prices appears more favorable. As consumers look forward to more stable pricing, the government's proactive measures are seen as a vital step in ensuring market equilibrium and accessibility to this essential kitchen staple.
