Delhi-NCR News: After Tomato, Onions Worry People As Prices Touch Rs 80. Govt To Give Subsidy On Buffer Stock

Data from the government revealed that the all-India average retail price of onions on Saturday stood at Rs 45 per kg, however, the maximum price of the crop was recorded at Rs 80 per kg.

While the demand for the crop is growing rapidly due to the festive season, the availability in the market has been on a downward trend.

Source : Getty

Onion prices are surging to new highs as the country moves further into the festive season. Across many cities in the country including Delhi, onion prices are reaching astronomical levels as Diwali approaches. 

Lately, onion prices in the retail markets in Delhi have increased from Rs 65 to Rs 80 per kg. Further, Mother Dairy, which operates about 400 Safal stores in the National Capital Region, has been selling onions at a retail price of Rs 67 per kg. E-commerce platforms like Big Basket have been selling the produce at Rs 67 per kg, while the local grocery vendors are selling onions at Rs 80 per kg. The average price of onions being sold in the retail market in Delhi ranges from Rs 65 to Rs 80 per kg. 

In October itself, onion prices have escalated greatly. Last week, on Wednesday, onions were being sold at Rs 54 to Rs 56 per kg at the Safal stores and within the span of two days, this price went up to Rs 67 per kg, essentially marking an increase of Rs 11-12 per kg in the period. Data from the government revealed that the all-India average retail price of onions on Saturday stood at Rs 45 per kg, however, the maximum price of the crop was recorded at Rs 80 per kg. The average onion price in Delhi itself stood at Rs 75 per kg. The first two weeks of October witnessed the average wholesale price of onions in the key Lasalgaon APMC in Maharashtra increase by more than 60 per cent.

Why Are The Prices Increasing?

The growth in prices has been attributed to the diminishing supply of onions in the market. While the demand for the crop is growing rapidly due to the festive season, the availability in the market has been on a downward trend. This gap exists due to the reduced sowing of the crop and deficit monsoon in certain parts of the country this year. 

On Saturday, the government announced a Minimum Export Price (MEP) for onions at $800 per MT to help control the supply of the produce in the domestic market and keep a tab on the surging prices. Additionally, the government also stated that it will procure an additional 2 lakh tonnes of onions for the buffer stock, the limit of which was already increased to 5 lakh tonnes in August earlier this year. 

In order to help the consumers, the government has further decided that it will sell buffer onion at a subsidised price of Rs 25 per kg in the retail market. This sale will be conducted through outlets and vehicles of the NCCF and NABED.