Government worried over rising onion prices, takes special steps to control prices
According to official figures, the retail price of onion in Delhi on September 22 was Rs 55 per kg, which was 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 is planning to increase retail sales of onion at a subsidized rate of Rs 35 per kg across India.
With retail prices of onion spiking after the recent removal of export duty, the government has intensified its effort to regulate prices by increasing sales from 'buffer stock' in wholesale markets. Consumer Affairs Secretary Nidhi Khare on Monday said the Centre has started pulling out onions from its 'buffer stock' in the wholesale markets of Delhi and other major cities. The government plans to sell subsidized onions across the country. Just about 10 days back, the government had scrapped the minimum export price of $ 550 per tonne of onions.
Khare said, "We expected a jump in prices after the removal of export duty. With a buffer stock of 4.7 lakh tonnes and increased area for Kharif sowing, we hope that onion prices will remain under control." The government is planning to increase retail sales of onion at a subsidized rate of Rs 35 per kg across India. In this, more attention is being given to those cities where prices are higher than the national average.
According to official data, the retail price of onion in Delhi on September 22 was Rs 55 per kg, which was 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 onion at the rate of Rs 35 per kg since September 5 through mobile vans and shops of National Cooperative Consumer Federation of India (NCCF) and National Agricultural Cooperative Marketing Federation of India (NAFED) in Delhi and other state capitals.
On edible oils, he admitted that the prices had been hiked following the recent import duty hike. He added that such a decision was meant to protect local farmers. The center had increased import duty on crude palm oil by 20 percent and processed sunflower oil by 32.5 percent to increase demand for domestic oilseed farmers and processors.
On tomatoes, Khare said the government will monitor the trends and intervene if needed. With domestic production of tur and urad remaining good and imports of pulses picking up, Khare exuded confidence over prices of pulses stabilizing in the months to come.
