To prevent a sudden increase in retail onion prices, the Centre announced on Friday that it has begun offloading the buffer stock in a calibrated and targeted manner to states where prices have risen in recent months.
The buffer stock is being released even in Maharashtra’s Lasalgaon and Pimpalgaon wholesale onion mandis to supplement supplies in these areas, according to a statement from the Consumer Affairs Ministry.
The states had been offered onion for Rs 21/kg ex-storage locations, according to the ministry. The Mother Dairy’s Safal outlets were also supplied at Rs 26/kg, including transportation costs, according to the statement.
Retail onion prices have been slowly increasing in recent weeks, according to government data. On February 18, onion prices were Rs 37/kg in Delhi and Chennai, Rs 39/kg in Mumbai, and Rs 43/kg in Kolkata.
The ministry further stated that late Kharif (summer) onion imports have remained consistent and are likely to do so till Rabi (winter) arrivals begin in March 2022.
According to the report, the all-India average price of onion was 22.36 percent lower on February 17 than the previous year.
According to the ministry, due to efficient market intervention through the Price Stabilisation Fund, onion prices were relatively stable in 2021-22. (PSF).
Similarly, the all-India average retail price of potato was 6.96 percent lower on February 17 than it had been the previous month, at Rs 20.58/kg.
“Potato seeding has been delayed in the southern region of West Bengal due to cyclone Jawad,” the ministry stated. “However, the State reported that crop area has recovered practically to last year’s level.”
The total crop area for 2021-22 is expected to be comparable to last year, according to the report.
Interest-free advances are offered to states for the development of State-level Price Stabilisation Funds, on a 50:50 share basis, under the PSF programme (75:25 in case of NE States).
So far, six states have taken the advance: Andhra Pradesh, Assam, Odisha, Tamil Nadu, Telangana, and West Bengal, with a total of Rs 164.15 crore released as Central share.
These states have the resources and authority to carry out the required actions to keep the price of vital food items under control.
“Other states have also been asked to establish the PSF for state-level measures to reduce price rises in crucial food goods,” the statement continued.
In the case of tomatoes, prices have been falling for the past month, but they are still slightly higher than last year.
The all-India average price of tomato was Rs 26.69/kg on February 1, a decrease from the previous month.
As the rate of arrivals in north India picks up, prices will drop much further in the coming week. Arrivals in South India will also pick up in the coming week and continue to do so until the end of February, according to the report.