Centre says it's trying to stabilise onion prices by releasing buffer stock

The government has also offered to sell states and union territories onion from its buffer stock at an ex-storage rate of ₹21 per kg.

The Central government is trying to stabilise the price of onions by releasing buffer stocks in states where onions are being sold above the all-India average price, and where price has been on the rise from last month, the ministry of food and consumer affairs said on Sunday.

The ministry also said that onion stocks are being released on a first-in-first-out basis in the market since the last week of August (PTI)

The ministry also said that onion stocks are being released on a first-in-first-out basis in the market since the last week of August to ensure prices remain moderate and loss due to storage can be minimised. Thus, the all-India average retail price of onion was at ₹37.06 per kg, while the average wholesale rate was ₹30 per kg on October 14, as a result of releasing onion stocks in a calibrated manner, the ministry added.

"Till October 12, a total of 67,357 tonnes have been released in major markets such as Delhi, Kolkata, Lucknow, Patna, Ranchi, Guwahati, Bhubaneshwar, Hyderabad, Bengaluru, Chennai, Mumbai, Chandigarh, Kochi and Raipur," the official release stated.

The government has also offered to sell states and union territories onion from its buffer stock at an ex-storage rate of ₹21 per kg.

Onion, a basic and valuable ingredient in Indian households, is impacted by seasonal changes which can cause prices to increase. Centre built a record reserve of 200,000 tonnes of onions in August to help deal with any major spikes in prices, Hindustan Times had reported.

Data collected in the past has shown that September marks the beginning of a three-month lean season as stocks from previous harvests are depleted by now and fresh harvest arrives in winter. Thus, the government maintained a robust buffer stock so they can release onions “as and when needed” from its own reserves to keep rates stable.

The ministry also said that similar efforts are being made to soften the prices of potatoes and tomatoes.

(with agency inputs)