Daijiworld Media Network - New Delhi
New Delhi, Aug 25: The Centre has decided to sell onions from its buffer stock at Rs 35 per kg in Delhi-NCR as retail prices continue to rise, with supplies expected to reach the national capital from Maharashtra's Nashik through special ‘Kanda Express’ freight trains.
The National Cooperative Consumers' Federation of India Ltd (NCCF) is expected to begin selling the subsidised onions in Delhi and neighbouring areas later this week, sources said.
NCCF will initially distribute the onions through 10 of its retail outlets in Delhi and surrounding regions. In addition, onions will be made available at Rs 35 per kg through 105 Bharat Brand retail stores operated by NCCF.
The subsidised distribution is expected to begin after the arrival of the special Kanda Express trains carrying onions from Nashik. The first such train is likely to reach Delhi by Wednesday or Thursday, according to sources.
Consumer Affairs Secretary Nidhi Khare said onions from the government buffer stock would initially be supplied to five major consumption centres.
“Initially, the onion will be supplied to five major consumption centres, namely Chennai, Madurai, Delhi, Ernakulam and Guwahati, with additional destinations to be included subsequently based on emerging market requirements,” Khare said.
The move comes amid a sharp increase in onion prices across the country.
The all-India average retail price of onions stood at Rs 43.53 per kg on Aug 24, marking a 59 per cent increase from Rs 27.37 per kg during the corresponding period last year.
The average wholesale price also increased 68 per cent year-on-year to Rs 35.58 per kg, compared with Rs 21.23 per kg a year earlier.
Prices have risen sharply in several major cities. In Chennai, onions were selling at around Rs 60 per kg on Monday, compared with Rs 33 a year ago. In Delhi, the price stood at Rs 55 per kg against Rs 35 last year, while Kolkata recorded a retail price of Rs 53 per kg.
The Centre maintains an onion buffer stock as a strategic reserve to ensure adequate supplies and contain prices when market availability tightens.
The stock is procured primarily through agencies including NCCF and the National Agricultural Cooperative Marketing Federation of India (NAFED) under the Price Stabilisation Fund.
During periods of seasonal shortages or sudden price increases, onions from the buffer stock are released into the market in a calibrated manner to improve availability and moderate prices.
Onion prices generally witness an increase during August and September due to a combination of factors, including festive demand, weather-related disruptions, supply-chain movements and changes in consumption patterns.
To manage such seasonal price spikes, the Ministry of Consumer Affairs releases onions from the buffer stock through bulk supplies to mandis as well as targeted retail sales in major consumption centres.
Officials said the strategy has been followed consistently in recent years, with the timing, quantity and destinations of buffer-stock releases determined through continuous monitoring of prices, supplies and market conditions across states.
The latest move is aimed at providing consumers in Delhi-NCR with onions at a substantially lower price while helping moderate the impact of the recent surge in market rates.