Onion prices likely to cool with new kharif crop arrival, says official

Onion prices are expected to further cool down in the coming days as the arrival of fresh kharif crop has begun, a senior consumer affairs ministry official said on Wednesday.

Currently, the average all-India retail price of onion is ruling at Rs 54 per kg and the prices have declined in the past one month after the government's subsidised sale of onion in key consuming centers, the official said.

The government is disposing of the buffer stock onion in the retail market at a subsidised rate of Rs 35 per kg in Delhi-NCR and other cities to provide relief to consumers from high prices. 

The government has a buffer stock of 4.5 lakh tonne of onion, of which 1.5 lakh tonne has been disposed till date.

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 the supplies.

"We will continue with the bulk rail transportation of buffer onion till we exhaust with the stock and prices stabalise," the official said.

About 4,850 tonne of onion has been supplied through rail rakes in the last few weeks to Delhi, Chennai, and Guhawati. A maximum of 3,170 tonne onion was transported to the price-sensitive Delhi market.

"Another rake of Rs 730 tonne by cooperative Nafed is expected to reach Delhi tomorrow," the official said noting this should further boost the availability and ease prices.

There was sudden pressure on onion prices in the last two days as mandis were closed and labourers were on leave due to festival season, the official said adding that the situation, however, has started improving now.

The official also mentioned that production is expected to be higher.