In order to reduce the soaring prices of onions ahead of Diwali, the government has decided to release onions from its buffer stocks into markets all over the country. This marks the first time that onions will be transported via railway rakes to major consumption centers and states.
Apart from selling onions at subsidized prices in retail markets, the government will also make them available on e-commerce platforms like Zepto, as well as private retail stores such as Reliance Retail and Safal. Additionally, onions will be sold through Kendriya Bhandars and mobile vans.
Due to the high cost of onions, which was close to Rs 100 per kg in major consumption centers, the government has been prompted to intervene by offloading its buffer stocks at a subsidized price of Rs 35 per kilo since last month. The recent data has shown a significant increase in food prices, with vegetable prices rising by 48.7% in September.
Approximately 1,600 MT of onions procured by NCCF under the price stabilization fund will be shipped by rail from Nashik to Delhi NCR, with the aim of increasing availability for consumers during the festive season. The government plans to dispose of 91,960 tonnes of onions out of its total buffer stock of 0.47 million tonnes.
In addition to onions, the government is also closely monitoring tomato prices. Excessive rainfall in Karnataka, a major contributor to tomato arrivals, has damaged crops. However, with the harvest beginning in Maharashtra, prices are expected to decrease.
Overall, these measures are being taken to alleviate the burden of high food prices on consumers, especially during the festive season.
