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Onion Prices Tumble as Govt Sells Stock at Rs 35
27 Aug
Summary
- Government sells buffer stock onions at Rs 35 per kg.
- Retail price offers 44% discount to market rate.
- Dedicated 'Kanda Express' railway rakes speed up supplies.
The government initiated the retail sale of onions from its buffer stock at Rs 35 per kg on Thursday, providing consumers a substantial 44% discount compared to the prevailing market price of Rs 62 per kg. This measure is designed to alleviate consumer costs and manage prices ahead of the festive period.
Consumer Affairs Secretary Nidhi Khare stated that recent price surges were attributed to hoarding and profiteering, assuring sufficient domestic supplies for the upcoming festive season. The government is not considering an export ban as supply levels are deemed adequate. Onions are being sold through Nafed, NCCF, Kendriya Bhandar, and Mother Dairy's Safal stores.
To expedite distribution to Delhi, dedicated railway rakes, dubbed 'Kanda Express', are transporting bulk consignments. The first rake, carrying 800 tonnes, has departed Nashik. The estimated onion production for 2025-26 is 307.37 lakh tonnes, marginally lower than the previous year, but buffer stocks and market interventions are expected to moderate price increases.
The government procured approximately 1.21 lakh tonnes for its buffer stock and is monitoring prices and availability across states. Seasonal price hikes are typical during festive periods due to increased demand and supply chain dynamics, prompting these proactive government measures.
