Govt issues key statement on onion prices

The government affirmed that onion availability remains comfortable to meet domestic demand in the coming months, backed by robust production, buffer stocks and targeted market interventions aimed at moderating seasonal price pressures.Estimated onion production stood at 307.37 lakh metric tonnes (LMT) in 2025-26, broadly in line with 307.67 LMT recorded in the previous year, the Ministry of Consumer Affairs, Food and Public Distribution said on Wednesday.Also read: Centre to sell onions at Rs 35/kg in Delhi from Thursday amid price surgeThe ministry said onion prices typically witness seasonal pressure during the festive and wedding season because of higher demand and supply-chain factors. The scale, coverage and channels of buffer stock releases will be expanded depending on market conditions and price trends.The government has commenced calibrated and targeted releases from its onion buffer stock, with supplies being transported to major consumption centres through a hybrid model involving railway rakes and road transport.For 2026-27, the government fixed a procurement target of 2 LMT of rabi onions for the Price Stabilization Fund buffer. Procurement, which began on May 15 through NAFED and NCCF, has so far resulted in the purchase of around 1.21 LMT.Retail sale of buffer onions at Rs 35 per kg will be launched through mobile vans and retail outlets operated by NCCF and NAFED, along with Safal and Kendriya Bhandar outlets. The intervention will initially cover nine NCCF outlets and 40 mobile vans, 13 NAFED outlets and 50 mobile vans, and around 100 Kendriya Bhandar outlets.Also read: Free dhaniya no more? India’s kitchen is feeling a new food squeezeKanda ExpressThe first Kanda Express carrying onions has left Nashik for New Delhi, marking the beginning of buffer stock transportation through railway rakes in the current financial year. Simultaneously, onions are being moved by road to Chennai, Kolkata, Ernakulam, Guwahati, Varanasi, Lucknow, Patna, Chandigarh, Jammu and Amritsar.The Kanda Express has become an increasingly important logistics channel for moving onions from producing regions to consumption centres. During 2024-25, 14 railway rakes transported nearly 12,000 tonnes of onions to five cities. This expanded to 86 rakes carrying around 88,000 tonnes to 16 cities in 2025-26.Onion exports have also remained robust, with shipments during April-June 2026 standing at around 3.82 LMT. Major destinations included Malaysia, Sri Lanka, the UAE and Nepal, the ministry said.The Department of Consumer Affairs monitors daily prices of 41 essential commodities, including onions, across 579 centres nationwide. These trends, along with market arrivals and demand conditions, are being used to determine the scale and destinations of buffer stock releases.The government said prices of key pulses and essential vegetables, including tomatoes and potatoes, are currently stable and range-bound. Prices of tomatoes, potatoes and chana dal are lower than a year ago, it added.133547684

from Economic Times https://ift.tt/35PCbzr