By – Aditi Gupta
According to a top Department of Consumer Affairs official, the Center has acquired 70,987 tonnes of onions so far on June 20, compared to 74,071 tonnes during the same period previous year. Even with an estimated 20 percent reduction in Rabi production, this year’s onion purchases for the price stabilization buffer are happening at a similar rate to last year’s.
The government has so far procured about 71,000 tonnes of onion this year for buffer stock out of the total target of purchasing five lakh tonnes of onion to control prices. Also, the government expects retail prices to come down with the progress of monsoon in most parts of the country. According to data collected by the Department of Consumer Affairs, the all-India average retail price of onion on Friday was Rs 38.67 per kg, while the price of high quality onion was Rs 40 per kg.
According to a top Department of Consumer Affairs official, the Center has acquired 70,987 tonnes of onions so far on June 20, compared to 74,071 tonnes during the same period previous year. According to the official, “Despite an estimated decline of about 20 percent in Rabi production, the pace of onion purchase for price stabilization buffer this year is largely similar to last year.” According to him, the government is making headway toward its goal of buying five lakh tons in order to regulate prices.
According to the official, in order to keep onion prices stable, the government will consider keeping onions in the buffer or releasing them onto the market. The buying price is a variable amount that is decided by the going rates in the market. According to the official, a 20 per cent decrease in production in Kharif, Late Kharif, and Rabi in 2023–24 compared to the previous year was caused by less rain in main producing areas, which is why onion prices have risen.
The government has slowly taken a number of steps to regulate prices, such as imposing a 40% export duty as of August of last year. In October 2023, the minimum export price (MEP) was set at US$ 800 per tonne. Exports were totally banned as of December 8, 2023.
These actions have contributed to keep onions available locally at relatively steady prices. Good Kharif output is expected this year because to the projection of an above-average monsoon and adequate stability in important mandis like Lasalgaon in Maharashtra. In light of this, the export ban on onions was lifted on May 4, 2024, with a 40% export duty and a maximum export price (MEP) of US$ 550 per tonne.