Onion prices in India are anticipated to decrease further as the fresh kharif crop begins to arrive, according to a senior official from the Consumer Affairs Ministry. The current retail price of onions across the country stands at approximately ₹54 ($0.64) per kilogram, showing a decline over the past month following the government's initiative to sell onions at a subsidized rate in major consumption areas.
The government has been releasing onions from its buffer stock into the retail market at ₹35 ($0.41) per kilogram in Delhi-NCR and other cities to mitigate high prices for consumers. Out of a total buffer stock of 450,000 tons, 150,000 tons have already been distributed.
For the first time, the transportation of buffer stock onions to key consumption centers is being carried out via railways, enhancing supply levels. The official stated, "We will continue with the bulk rail transportation of buffer onion till we exhaust the stock and prices stabilize." Approximately 4,850 tons of onions have been dispatched to Delhi, Chennai, and Guwahati in recent weeks, with Delhi receiving the largest share of 3,170 tons. An additional shipment of 730 tonnes by cooperative Nafed is expected to arrive in Delhi soon, further augmenting availability.
Recent closures of mandis and the absence of labor due to the festive season caused a temporary spike in onion prices, but the situation is improving with the resumption of normal activities and the expected increase in production.
Source: Business Standard