- Union government released onion stocks to curb festive season price surge
- Special trains and trucks deployed for efficient onion distribution nationwide
- Fresh Kharif onion arrivals rising in key states, boosting overall market supply
To contain the surge in kitchen expenses during the festive season, the Union government has undertaken a large-scale, calibrated market intervention by releasing onion stocks from its Price Stabilisation Fund buffer.
Through dedicated transportation networks, including trucks and the newly introduced "Kanda Express" special trains, the government said it has helped stabilise onion prices and bring down retail rates across key consumption centres, according to an official release.
According to a government communique, fresh Kharif onion arrivals have begun in key producing states such as Karnataka, Andhra Pradesh and Rajasthan, while stored stocks continue to supplement market supplies and meet prevailing demand. With arrivals from these regions expected to rise in the coming weeks, overall onion availability in consuming markets is likely to improve, providing adequate supplies ahead of the upcoming festive season.
"The outlook for onion availability has strengthened considerably, with higher Kharif acreage, favourable crop conditions, robust market arrivals and the commencement of fresh Kharif supplies supporting the market. The improving supply position is already translating into a broad-based moderation in onion prices across mandis and major consumer markets," the Ministry of Consumer Affairs, Food & Public Distribution said in a release.
"The production outlook for the Kharif crop is encouraging. All-India Kharif onion acreage is estimated to be around 5 per cent higher than last year's already strong level, with crop conditions remaining favourable across major producing regions. The rainfall outlook by IMD during the harvesting period also provides support to the crop, with no forecast of excessive rains in key Kharif onion regions in the coming weeks to facilitate harvesting, drying and movement of onions and reduce the risk of moisture-related crop damage," the release further added.
The government further stated that the improving supply situation is now being reflected in mandi prices. Arrivals across major onion markets have remained strong, with Maharashtra's weighted average mandi price falling nearly 13 per cent-from around Rs 4,030 per quintal on September 16 to approximately Rs 3,475 per quintal on October 3. The continued decline in mandi prices suggests that higher market arrivals are translating into better supply conditions.
The easing trend is increasingly evident in retail markets as well. Over the past two weeks, onion prices have declined by Rs 1-21 per kg across 126 cities. Prices have moderated in several major consuming States, including Tamil Nadu, Madhya Pradesh, Uttar Pradesh, Karnataka, Odisha, Andhra Pradesh, Bihar and West Bengal. The widespread decline across geographically diverse markets suggests that the improvement is broad-based, rather than limited to specific mandis or regions, pointing to stronger onion availability across the country, according to the government.
The government is further strengthening onion supplies to consuming centres through the release of buffer stocks. So far, more than 2 lakh quintals of onions have been dispatched through 8 Kanda Express trains and 467 trucks, covering 123 cities. To ensure adequate supplies to high-consumption markets, additional rail rakes are also being planned. These efforts are being stepped up ahead of the festive season to facilitate faster, more efficient and uninterrupted distribution of onions across the country.
READ | Cost Of Home-Cooked Meals Rise Moderately In August Spurred By Onion, LPG, Vegetable Oil Price Rises
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