Prices of Onion cheaper than last year

IAS Prelims 2023

Prices of Onion are now cheaper than last year, All India Retail & Wholesale prices of Onion are Rs 40.13kg and 3215.92 p/q respectively.Efforts of Centre to ease Onion Prices is now bearing results.

It may be noted that Onion prices had started rising from the first week of October, 2021, due to rains that disrupted the supply chain. In order to cool down prices, the Department of Consumer Affairs has taken up calibrated and targeted release of onions from the buffer on First-in-First-Out (FIFO) principle, guided by the twin objectives of moderating prices and ensuring minimal storage loss.

As a result of these steps, the All India retail prices of Onion on 03.11.2021 is Rs 40.42 per kg while the All India wholesale price of Onion is Rs 3253.53 /qtl.

Till 2nd November, 2021, a total of 1,11,376.17 MT has been released in major markets such as Delhi, Kolkata, Lucknow, Patna, Ranchi, Guwahati, Bhubaneshwar, Hyderabad, Bangalore, Chennai, Mumbai, Chandigarh, Kochi and Raipur. In addition, onions are disposed of in local markets in Maharashtra, Madhya Pradesh and Gujarat.

Apart from releasing in the market, the Department of Consumer Affairs has offered onions from the buffer at Rs.21/kg to all the States and UTs for lifting from the storage locations. This would enable States/UTs to take up, by themselves, market interventions either through direct supply to retail consumers through retail outlets or release in key markets to bring down prices. The stocks are also available for supply to Central/States agencies involved in retail marketing either at ex-storage rate of Rs.21/kg or at landed price after including transportation costs. SAFAL has been offered at landed price of Rs.26/kg and has lifted 400 tonnes. Nagaland is being supplied from the buffer.

Onion buffer has been maintained by the Department of Consumer Affairs under the Price Stabilization Fund (PSF) with the objective of effective market intervention to moderate prices. In 2021-22, against the target of building 2 LMT Onion buffer a total of 2.08 LMT was procured from Rabi-2021 crop during April to July, 2021.





    Source PIB