Market intervention helped in controlling onion prices: Centre

New Delhi: The Centre on Tuesday said the fifth bulk shipment of 720 tonne of buffer onion will reach the national capital on November 21 as part of its market intervention to control prices.

This marks the continuation of the government's initiative, started last month, to transport buffer onion from Maharashtra to Delhi via railways for the first time.

So far, 4,010 tonne have been dispatched for retail sale at Rs 35 per kg.

The market intervention has significant impact on the prices of onions in various states including Delhi both at wholesale and retail levels, Ministry of Food and Consumer Affairs said in a statement.

The government recently dispatched 840 tonnes each to Chennai and Guwahati. Another 840 tonnes shipment to Guwahati is planned this week, while Lucknow will receive a similar quantity in 2-3 days.

The government had procured 4.7 lakh tonne of rabi onion for the price stabilisation buffer this year, and started the release from September 5, 2024, through retail sale at Rs.35 per kg and also through bulk sales in major mandis across the country.

Till date over 1.50 lakh tonnes of onion in the buffer has been dispatched from Nashik and other source centres to consuming centres.

According to the Department of Agriculture and Farmers’ Welfare, actual kharif onion sown area this year was 3.82 lakh hectare which is 34% higher than 2.85 lakh hectare sown last year, the statement said.

Sowing progress of late kharif onion is also reported to be normal with coverage of 1.28 lakh hectare till first week of November. More kharif onions arriving in the markets along with increased disposal of buffer stocks and also good sowing progress of late kharif will ensure availability of onions to the consumers at affordable prices, the statement said.