Onion prices expected to cool down with arrival of kharif crop: Govt officials

Onion prices are expected to cool down in the coming weeks as the arrival of the fresh kharif crop has begun, senior officials at the Consumer Affairs Ministry said on Wednesday.

Currently, the average all-India retail price of onion is at ₹54 per kg and prices have declined in the past month after the government’s subsidised sale of onion in key consuming centres, the official said. Onions in some of the major States such as Uttar Pradesh were at ₹51.36 per kg, Bihar at ₹56.11 per kg, Madhya Pradesh at ₹49.18 and Rajasthan at ₹47.57.

The government is disposing of the buffer stock of onions in retail markets at a lower rate of ₹35 per kg in Delhi-NCR and other cities to provide relief to consumers from high prices.

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Rail transportation to continue

According to the ministry official, the buffer stock onion is being transported to key consuming centres through railways for the first time and is helping boost supplies. ”We will continue with the bulk rail transportation of buffer onion till we exhaust the stock and prices stabilise,” the official said.

About 4,850 tonnes of onion have been supplied through rail rakes over the last few weeks to Delhi, Chennai, and Guwahati. A maximum of 3,170 tonnes of onion would be transported to the price-sensitive Delhi market (including the latest rake expected to arrive November 14) since October 20, when the first train carrying 1,600 tonnes reached the capital.

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More for Delhi

“Another rake of 730 tonnes by cooperative Nafed is expected to reach Delhi Thursday,” the official said, noting this should further boost the availability and ease prices.

Officials said onion prices witnessed an uptick recently as labourers were on leave due to Chhat Puja, and normal trading at mandis was not taking place. However, it has now started to improve.

Sources said the kharif onion crop has now started coming to the market and prices have begun to ease. At the same time, the kharif crop sowing area has increased this time around which will lead to higher production.