49% increase in kharif onion acreage to help cool prices in coming months

Onions (Photo: Shutterstock)

The Centre today expressed hope that onion availability will improve in the coming months due to nearly 49 per cent increase in kharif sowing area.

This would help lower prices.

In a bid to keep the rates under control, the first phase of retail sale of onion has been started at a subsidised rate of Rs 35 per kg, providing relief to consumers in Delhi-NCR and Mumbai from today.

Meanwhile, the government said in a statement that as per data collected by the agriculture ministry, 290,000 hectares were covered with kharif onion till August 26, compared to 194,000 hectares in the corresponding period last year.

In addition, there are approximately 3.8 million tons of onions in the storage of farmers and traders.

It was also said that price realisation by onion farmers during the just-concluded rabi season was better compared to last year as mandi prices remained in the range of Rs 1,230-Rs 2,578 per quintal, compared to Rs 693-Rs 1,205 per quintal last year.

The average price for purchasing buffers this year was Rs 2,833 per quintal, compared to Rs 1,724 per quintal last year.

Because onions suitable for storage are purchased for the buffer, the purchase prices of onions are always higher than the current modal price.

On the retail side, the official statement said NCCF and NAFED, which maintain a buffer stock of 0.47 tonnes of onions on behalf of the government, will handle retail operations through their stores and mobile vans.

The onion is sold across 38 outlets in Delhi-NCR and at Parel and Malad in Mumbai.

The onion will also be sold at a subsidized rate on e-commerce platforms and outlets of Kendriya Bhandar and Mother Dairy’s SAFAL in major consuming areas.

Currently, the retail prices of onions are above Rs 60 per kg, depending on the quality and location in the capital.

In the coming days, more and more cities will be affected by the cheap onion sale.

The second phase, which begins next week, will include major capitals such as Kolkata, Guwahati, Hyderabad, Chennai, Bengaluru, Ahmedabad and Raipur. The pan-India sale will take place from the third week of September.

Average Selling Price of Onions (in Rs/kg)

Stands

5-September

1 month ago

% Change

Delhi

60

45

33.3

Maharashtra

51

38

34.2

West Bengal

51

43

18.6

Uttar Pradesh

45

41

9.8

Source: Ministry of Consumer Affairs

First publication: 05 Sep 2024 | 20:03 IST

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