In a proactive move to curb the soaring prices of onions and ensure affordability for consumers, the central government has announced its decision to release onions from its buffer stocks into retail markets across more than 100 cities, starting from November 3. This decision comes after an in-depth analysis of areas experiencing significant price hikes and aims to stabilize the market during the festive season.
Officials, speaking on condition of anonymity, revealed to Moneycontrol, that the government plans to release one lakh tonnes of onions in retail markets throughout November, focusing on areas where price surges have been most notable.
While the government had previously intervened in both wholesale and retail markets, the recent strategy of infusing buffer stocks into retail markets has proven to be more effective, leading to a noticeable decline in prices in several cities such as Indore, Bhopal, Raipur, Ranchi, Jaipur, Kota, Lucknow, and Varanasi.
Earlier interventions, including the imposition of a minimum export price (MEP) of $800 per tonne on October 28 and export duties of 40% imposed in August, have contributed to increasing domestic supplies and subsequently reducing prices. Despite these efforts, the retail price of onions in the national capital remained high at ₹77 per kg, prompting the government to step up its efforts.
The government remains committed to preventing onion prices from reaching alarming levels and has taken steps to strengthen its buffer stock. Initially planning to maintain a buffer of three lakh tonnes for the year 2023-24, the government increased it to five lakh tonnes after prices surged in August. In a recent statement, officials announced a further strengthening of the stock, raising the buffer to seven lakh tonnes, indicating the government's determination to keep onion prices under control.
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