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- Onion Price Hike India | Delhi Chennai Onion Rates Surge Despite Subsidy
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Despite selling onions at cheaper rates from the central government’s buffer stock, prices have not decreased. The government is selling onions at the price of ₹35 per kg in 17 cities from August 28. Despite this, the average retail price of onion across the country has increased from ₹ 48.5 per kg to ₹ 50.79 per kg.
According to data from the Consumer Affairs Department, around 4,000 tonnes of buffer onion has been sold in the first 10 days of the scheme. Despite this, onion prices remain high in metros.
The price reached ₹ 65 in Delhi and ₹ 63 per kg in Chennai.
On September 5, a huge difference in onion prices was seen in major cities of the country. Onion was sold at ₹65 per kg in Delhi, ₹53 per kg in Mumbai, ₹63 per kg in Chennai and ₹40 per kg in Ranchi. At the same time, the average wholesale price of onion across the country was recorded at ₹ 42.79 per kg.
Onion consignment being transported by ‘Kanda Express’ train and trucks
The government is releasing onion from its buffer stock of 1.21 lakh tonnes created for the year 2026. This work is being done through National Cooperative Consumers Federation (NCCF) and NAFED.
Onions from the producing states are being sent to the cities where prices are rising through trucks and special railway goods train ‘Kanda Express’. Consumer Affairs Secretary Nidhi Khare said that a large quantity of onion has been sent to Delhi and Chennai.
Officers claim- prices reduced by 2 to 3 rupees due to buffer sale
According to Nidhi Khare, there has been a slight softening of prices at the local level due to the release of buffer stock. He said that the onion of government buffer is equal in size and quality to the onion of private traders.
Meanwhile, NCCF Managing Director Anis Joseph Chandra said that his agency has so far sold 1,500 tonnes of buffer onion in different cities. Their focus is on delivering onions directly to consumers at retail level at ₹35 per kg.
Retail sales through mobile vans and societies
Sale of cheap onions is going on in many states including Delhi-NCR, Tamil Nadu, Uttar Pradesh, Kerala, Rajasthan, Punjab and Odisha. Many state governments have also expressed their desire to participate in this scheme. NCCF is distributing onions in collaboration with state governments. Central Warehousing Corporation is handling the sorting, grading, packing and transportation of onions.
The main reason for increasing prices and when will there be further relief?
Nidhi Khare told that this year the onion crop of Rabi season was damaged due to unseasonal rain during harvesting. Rabi onions are stored for the whole year.
However, the government now has hope from the new crop of Kharif season. New crops will start arriving in the markets from mid-October, which will increase the supply and provide permanent relief from rising prices.
Knowledge Box: What is Kanda Express and Buffer Stock?
Kanda Express: Special parcel/freight train of Indian Railways, which is run from onion producing areas (e.g. Nashik in Maharashtra) directly to major consuming cities for fast supply.
Mathematics of buffer stock: The government keeps 1.21 lakh tonnes of onion in reserve, so that when the prices suddenly increase in the off-season, it can be released in the market and the prices can be kept under control.
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