New Delhi has taken further steps to alleviate the burden of rising onion prices for consumers. The Centre announced that Mother Dairy’s Safal outlets will offer buffer onions at a subsidized rate of Rs 25 per kg in Delhi-NCR starting from this weekend. Similarly, the Hyderabad Agricultural Cooperatives Association will do the same in Telangana and other southern states. Cooperative bodies NCCF and Nafed are already selling buffer onions on behalf of the government, with Nafed establishing 329 retail points and NCCF setting up 457 retail points across various cities and states.
In addition to this, Kendriya Bhandar has also commenced the retail supply of onions through its outlets in the Delhi-NCR region since November 3rd. The Ministry of Consumer Affairs stated, “Safal Mother Dairy will start from this weekend. The retail sale of onions to consumers in Telangana and other southern states is being taken up by Hyderabad Agricultural Cooperatives Association (HACA).” The ministry’s objective is to actively sell onions from the buffer stock to provide relief to consumers who have been affected by the recent surge in prices due to delayed arrival of the kharif crop. The government has already maintained a buffer stock of 5 lakh tonnes of onions for this year and intends to create an additional buffer of 2 lakh tonnes.
Although wholesale prices have started to decline, it may take some time for the impact to be seen in retail markets. The statement provided by the ministry confirmed that the wholesale price of onions in the Lasalgaon market in Maharashtra was Rs 4,800 per quintal on October 28th. However, on November 3rd, it had dropped to Rs 3,650 per quintal, indicating a 24% decline in just one week. The ministry expects a similar decline in retail prices in the coming week.
It is worth noting that the government had previously intervened in response to a significant increase in tomato prices caused by supply disruptions due to monsoon rains and white fly infestation in June 2023. It procured tomatoes through NCCF and Nafed from producing states such as Karnataka, Andhra Pradesh, and Maharashtra, and supplied them to major consumption centers at highly subsidized rates. Similarly, to ensure the availability and affordability of dal for ordinary households, the government has launched Bharat Dal priced at Rs 60 per kg. Bharat Dal is now available for retail sale to consumers, as well as for supplies to the Army and welfare schemes through NAFED, NCCF, Kendriya Bhandar, Safal, and state-controlled cooperatives in Telangana and Maharashtra.
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