The Union Food Ministry said retail onion prices were not rising exceptionally. Buffer stocks are being issued to reduce onion prices as there is a need to ban its exports. At the same time, state governments are of the view that onion prices are unlikely to rise sharply in the coming days.
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The Union Food Ministry says retail onion prices are not exceptionally high. Buffer stocks are being issued to reduce onion prices as it needs to ban its exports. At the same time, state governments are of the view that onion prices are unlikely to rise sharply in the coming days. Domestic kharif onion production from July to June of the 2021-22 crop year is estimated at 43.88 lakh tonnes, compared to 37.38 lakh tonnes in the same period a year ago.
The government is issuing a buffer stock
Onion prices are not rising exceptionally, according to food ministry figures. Prices are lower than last year. However, the government has already started intervening in the market to control onion prices. Onion prices have not yet reached the maximum level that requires immediate action under the Commodities Act. According to ministry figures, the average price of onion on October 21 was Rs 41.5 per kg, down from Rs 55.6 per kg in the same period a year ago. According to government data, onion prices were at Rs 48 per kg in Delhi, Rs 43 per kg in Mumbai, Rs 37 per kg in Chennai and Rs 57 per kg in Kolkata on Friday. However, the price of onion in the vegetable market in Delhi has gone up from Rs 70 to Rs 80 per kg.
Premature rain villain
According to the Ministry of Food, more than 81,000 tonnes of onions have already been released from the buffer stock in fast-rising markets. The aim of this initiative is to improve the availability of onions and control prices. Nearly one lakh tonnes of the government-maintained record two lakh tonnes of onion buffer stock is still available in the market. The central government is also supplying onions to the states at subsidized rates to increase supply. Apart from this, kharif onion production is expected to increase by 7.8 lakh tonnes this year and this will help further reduce onion prices in the coming days. The recent unseasonal rains have contributed to the rise in retail prices. As a result, about 0.59 lakh hectares of onion crop in Maharashtra, Karnataka, Haryana, Rajasthan, Madhya Pradesh and Andhra Pradesh were slightly affected.
That is why onion prices are rising
Buffer stock shortening shelf life due to delay in kharif crop arrival and tout storm are raising prices. Onion prices are likely to rise by more than 100% this year compared to 2018. Kharif 2021 prices have gone up by Rs. 30 is expected to be crossed. However, due to the high base of Kharif 2020 it will be slightly less than 1.5 per cent per annum. On the other hand, onion prices are on the rise in October-November due to delay in crop arrival due to lack of rains.