Govt to Release Onion Buffer Stock to Stabilize Prices

New Delhi, Nov 12 (PTI) The government on Tuesday said it is keeping a close watch on onion prices and has decided to offload more quantities from buffer stock in retail markets to stabilise rates amid temporary supply constraints.

According to government data, the retail price of onion is Rs 67 per kg in the national capital while the all-India average retail price of the kitchen staple is Rs 58 per kg.

"The government has decided to upscale the onion disposal in order to address temporary constraint in onion supply observed in certain markets in the past 2-3 days owing to festival season and closure of mandis," an official statement said.

Co-operative NAFED has indented two more rakes for Delhi-NCR and one for Guwahati this week. Similarly, dispatch through road transport would also be upscaled to ensure the availability of onions in the market.

"The availability of onions would be further accentuated by more supplies from NCCF, both through rail and road transport," it added.

Moreover, the government has also decided to offload onions kept in cold storage at Sonipat to meet the requirements of Punjab, Haryana, Chandigarh, Himachal, Jammu & Kashmir, Delhi etc.

"The government is alive to the market developments and keeping a close watch to take ameliorative action to stabilise the onion prices," the statement said.

The government procured 4.7 lakh tonnes of rabi onion for price stabilisation buffer this year. It started offloading on September 5 through retail sales at Rs 35 per kg and also through bulk sales in major mandis across the country.

Till date, over 1.50 lakh tonnes of onion in the buffer has been dispatched from Nashik and other source centres to consuming centres through trucks by road transport.

As per the assessment of the Department of Agriculture, the actual kharif sown area this year was 3.82 lakh hectare which is 34 per cent higher than 2.85 lakh hectare sown last year.

The sowing progress of late kharif onion is also reported to be normal with coverage of 1.28 lakh hectare till the first week of November.

Meanwhile, the government said the retail prices of tomato are on the decline with the fall in mandis prices.

At Azadpur mandi, the weekly average price is down by 27 per cent to Rs 4,000 per quintal and at Pimpalgaon (Maharashtra), the weekly average price is down by 35 per cent to Rs 2,250 per quintal.

In Madanapalle (Andhra Pradesh), the weekly average price is down by 26 per cent to Rs 2,860 per quintal amidst a 20 per cent increase in total weekly arrivals. In Kolar (Karnataka), the weekly average price is down by 27 per cent to Rs 2,250 per quintal.

The all-India average retail prices of potato are stable during last three months at about Rs 37 per kg.