New Delhi, The government has purchased nearly 71,000 tonnes of onion so far this year for buffer stock, out of the total target of procuring 5 lakh tonnes for price stabilization and expects retail prices to decline with the progress of monsoon in most of the world. country.
According to data compiled by the Department of Consumer Affairs, the average retail price of onion across India stood at Rs 38.67 per kg on Friday, while the modal price was Rs 40 per kg.
Till June 20, the Center has procured 70,987 tonnes of onion, as against 74,071 tonnes procured in the same period last year, a senior official of the Consumer Affairs Department said.
"The pace of onion procurement to stabilize prices this year is largely comparable to last year, despite a decline of around 20 percent in estimated rabi production," the official said, adding that the government is on track to achieve target procurement of 5 lakh tonnes. for price stabilization.
The government will exercise the option of keeping or releasing onions from the buffer to maintain stability of onion prices, the official said.
The acquisition price is dynamic and is linked to current market prices.
The rise in onion prices is due to a production shortfall in 2023-24 of around 20 per cent each in Kharif, late Kharif and Rabi, over the previous year due to less rain in major producing areas, he explained. the official.
To control prices, the government has been taking measures gradually, since August last year starting with a 40 percent export duty, followed by a Minimum Export Price (MEP) of $800 per ton in October 2024. and the imposition of an export ban. starting December 8, 2023.
These measures have helped maintain domestic onion availability at reasonably stable prices.
The export ban has been lifted from May 4, 2024 with an MEP of $550 per tonne and 40 per cent export duty in view of substantial stability seen in major mandis such as Lasalgaon in Maharashtra and the prospect of good Kharif production thanks to the above. Normal monsoon prediction this year.
"The prolonged and extreme heat wave currently prevailing in much of the country has affected the production of green vegetables and led to an increase in the prices of vegetables such as tomatoes, potatoes and onions," the official said, adding that the situation is expected to improve. with the arrival of monsoon in most parts of the country.
In March, the Union Agriculture Ministry released data on onion production. As per the data, onion production in 2023-24 (first advance estimates) is expected to be around 254.73 lakh tonnes, compared to around 302.08 lakh tonnes last year.
This is due to a decline in production of 34.31 lakh tonnes in Maharashtra, 9.95 lakh tonnes in Karnataka, 3.54 lakh tonnes in Andhra Pradesh and 3.12 lakh tonnes in Rajasthan, data showed. data.
According to data compiled by the Department of Consumer Affairs, the average retail price of onion across India stood at Rs 38.67 per kg on Friday, while the modal price was Rs 40 per kg.
Till June 20, the Center has procured 70,987 tonnes of onion, as against 74,071 tonnes procured in the same period last year, a senior official of the Consumer Affairs Department said.
"The pace of onion procurement to stabilize prices this year is largely comparable to last year, despite a decline of around 20 percent in estimated rabi production," the official said, adding that the government is on track to achieve target procurement of 5 lakh tonnes. for price stabilization.
The government will exercise the option of keeping or releasing onions from the buffer to maintain stability of onion prices, the official said.
The acquisition price is dynamic and is linked to current market prices.
The rise in onion prices is due to a production shortfall in 2023-24 of around 20 per cent each in Kharif, late Kharif and Rabi, over the previous year due to less rain in major producing areas, he explained. the official.
To control prices, the government has been taking measures gradually, since August last year starting with a 40 percent export duty, followed by a Minimum Export Price (MEP) of $800 per ton in October 2024. and the imposition of an export ban. starting December 8, 2023.
These measures have helped maintain domestic onion availability at reasonably stable prices.
The export ban has been lifted from May 4, 2024 with an MEP of $550 per tonne and 40 per cent export duty in view of substantial stability seen in major mandis such as Lasalgaon in Maharashtra and the prospect of good Kharif production thanks to the above. Normal monsoon prediction this year.
"The prolonged and extreme heat wave currently prevailing in much of the country has affected the production of green vegetables and led to an increase in the prices of vegetables such as tomatoes, potatoes and onions," the official said, adding that the situation is expected to improve. with the arrival of monsoon in most parts of the country.
In March, the Union Agriculture Ministry released data on onion production. As per the data, onion production in 2023-24 (first advance estimates) is expected to be around 254.73 lakh tonnes, compared to around 302.08 lakh tonnes last year.
This is due to a decline in production of 34.31 lakh tonnes in Maharashtra, 9.95 lakh tonnes in Karnataka, 3.54 lakh tonnes in Andhra Pradesh and 3.12 lakh tonnes in Rajasthan, data showed. data.
