Government Steps Up Buffer Stock Sale to Curb Rising Onion Prices Following Export Duty Removal

The government is ramping up efforts to control rising onion prices by increasing the sale of buffer stock in wholesale markets. This move comes in response to a surge in retail prices following the recent removal of the export duty. Consumer Affairs Secretary Nidhi Khare announced on Monday that the Centre has started offloading onions from its buffer stock in wholesale markets in Delhi and other major cities, with plans to extend subsidized retail sales across the country.

According to a report of PTI, "We anticipated a price surge after lifting the export duty. With our 4.7 lakh tonne buffer stock and increased kharif sowing area, we expect to keep onion prices in check," Khare told reporters here.

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The government intends to boost retail sales of onions at a subsidized rate of Rs 35 per kg nationwide, targeting cities where prices surpass the national average. As of September 22, official data indicates that the retail price of onions in Delhi has risen to Rs 55 per kg, up from Rs 38 per kg last year. Meanwhile, prices in Mumbai and Chennai have reached Rs 58 and Rs 60 per kg, respectively. Since September 5, the government has been selling onions at Rs 35 per kg through mobile vans and outlets of NCCF and NAFED in Delhi and other state capitals.

Consumer Affairs Secretary Nidhi Khare stated that the government will closely monitor tomato price trends and intervene if necessary. With promising domestic production of tur and urad and an increase in pulse imports, Khare anticipates stable pulse prices in the coming months. Recently, the government eliminated the USD 550 per tonne minimum export price on onions and raised the import duty on crude palm oil to 20% and on refined sunflower oil to 32.5%, in an effort to support domestic oilseed farmers and processors.