The central government on Friday stated that it has started offloading the buffer stock of onion in a calibrated and targeted manner to states where prices have been observed to be increasing.
According to data by the consumer affairs ministry, retail onion prices are inching up slowly in the last few weeks.
The prices were ruling at ₹37/kg in Delhi and Chennai, while ₹39/kg in Mumbai and ₹43/kg in Kolkata on 18 February.
In view of this, the Centre is releasing stock in Lasalgaon and Pimpalgaon wholesale mandis of onion in Maharashtra to augment the supply in these markets.
The ministry said the states had been offered onion at ₹21/kg ex-storage locations. The Mother Dairy's Safal outlets had also been supplied at ₹26/kg inclusive of transportation cost, it said.
"... aggressive releases of onion from the buffer contributes to stability in prices," the ministry said.
The ministry further said that late Kharif (summer) onion arrivals are steady and expected to remain till Rabi (winter) arrival from March 2022.
It however noted that as of 17 February, the all-India average price of onion was ruling 22.36% lower than the last year.
According to the ministry, onion prices remained substantially stable during 2021-22 due to effective market intervention through the Price Stabilisation Fund (PSF).
Similarly, all India average retail price of potato was ruling 6.96% lower at ₹20.58/kg on February 17 from over the last month.
"Potato sowing has been delayed in the southern part of West Bengal due to cyclone Jawad, however, the State reported that crop area has recovered almost to the level of last year," the ministry said.
The total crop area for 2021-22 is estimated to be comparable with that of last year, it added.
Under the PSF scheme, interest-free advances are provided to states for the creation of State-level Price Stabilisation Fund, on a 50:50 sharing basis (75:25 in case of NE States).
So far six states – Andhra Pradesh, Assam, Odisha, Tamil Nadu, Telangana and West Bengal – have drawn the advance and a total of ₹164.15 crore has been released as a Central share.
These states have the funds and mandate to undertake necessary interventions for controlling prices of essential food commodities.
"Other states have also been requested to set up the PSF for state-level interventions to control price rise in essential food commodities," the ministry said.
