Onion becomes cheaper after government releases 1.11 lakh tonnes of buffer stock
On Wednesday, the central government released buffer onions in the markets of Delhi, Kolkata, Lucknow, Patna, Ranchi, Guwahati, Bhubaneswar, Hyderabad, Bengaluru, Chennai, Mumbai, Chandigarh, Kochi and Raipur. Along with this, onions were also sold in local markets in Maharashtra, Madhya Pradesh and Gujarat.
About 1.11 lakh tonnes of onions have been released in these main markets in the country and according to data from the Ministry of Consumption, the Centre’s intervention of releasing onions from buffer stock has contributed to lowering prices of retail from 5 to 12 Rs per kg.
The Department of Consumer Affairs said: “Onion prices are also stabilized thanks to the buffer stock. …. The Centre’s efforts to ease onion prices are now bearing fruit. Onion prices are now cheaper than last year as the average retail price for all of India of the kitchen staple is Rs 40.13 per kg, while on the wholesale market it is Rs 31.15 per kg.”.
A total of 1,11,376.17 tonnes of onions were in the main markets until November 2 after its release.
Following the publication, onion retail prices in Delhi dropped from Rs 49 per kg on October 20 to Rs 44 per kg on November 3, likewise in Mumbai – from Rs 50 per kg to Rs 45 on October 14 , Kolkata – from Rs 57 to Rs 45 per kg on October 17 and Chennai – from Rs 42 to Rs 37 per kg on October 13.
The ministry also informed that – “Onion prices had started to rise from the first week of October due to rains that disrupted the supply chain.”
Guided by the dual objective of moderating prices and ensuring minimal storage loss, the government adopted the targeted and calibrated release of onions from buffer stock on a first-in-first-out basis to reduce price increases. onion. In addition, the government has offered the buffer onion to all states and union territories at Rs.21 per kg for lifting storage places. In doing so, the States / Union territories will be able to intervene in the market themselves, either by supplying retail consumers directly through retail outlets, or by releasing them in key markets to appropriate prices. .
“Stocks are also available for supply to central / state agencies involved in retail marketing, either at an ex-storage rate of Rs.21 per kg, or at the landed price after including transportation costs.”- said the Ministry.
A price of Rs 26 / kg for onion was offered to Mother Dairy’s Safal and it took out around 400 tonnes. Buffer onion is also supplied to the northeastern state of Nagaland.
The Price Stabilization Fund (PSF) maintains the cushion for the onion with an objective of effective intervention in the market to moderate prices.
2.08 lakh tonnes of onion was purchased for a buffer for 2021-22, which is a bit higher than the target of 2 lakh tonnes.