In response to a surge in retail prices following the recent elimination of export tax, the government has increased the sale of buffer stock in wholesale markets as part of its attempts to keep a lid on onion prices.
With intentions to increase subsidized retail sales across the country, Consumer Affairs Secretary Nidhi Khare said on Monday that the Center has started unloading onions from its buffer stock at wholesale markets in Delhi and other major cities.
"We expected that once the export tariff was lifted, prices would soar. We anticipate controlling onion prices with our 4.7 lakh tonne buffer stock and expanded kharif sowing area," Khare informed reporters in this location
The government intends to boost onion retail sales in India at a subsidized rate of Rs 35 kg, with an emphasis on towns where prices are higher than the country as a whole. According to official statistics, the retail price of onions in Delhi increased from Rs 38 per kg to Rs 55 per kg on September 22. Chennai and Mumbai now charge Rs 60 and Rs 58 per kilogram, respectively.
Onions have been sold by the government for Rs 35 kg from September 5 through mobile vans and NCCF and NAFED stores in Delhi and other state capitals.
Khare announced that this year's kharif onion harvest will be much larger than previous year's, which gave him encouragement. "Arrivals will begin next month, and we foresee no production concerns," she stated.
The secretary spoke about other commodity prices as well, wherein, she said that recent increases in import duties have resulted in a price increase for edible oils, but the decision was made to safeguard domestic growers. Khare stated that the government will keep an eye on tomato patterns and take appropriate action if needed.
Khare anticipates steady pulse pricing in the upcoming months due to increasing imports of pulses and the good outlook for local tur and urad output. In an effort to assist domestic oilseed growers and processors, the government eliminated the USD 550 per tonne minimum export price for onions ten days ago. In exchange, import duties on crude palm oil were increased to 20% and on refined sunflower oil to 32.5%.
