NEW DELHI, Aug 12 (NNN-PTI) – The Indian government decided yesterday, to release stocks of onions, to check the commodity’s rising prices in some parts of the country.
This year’s buffer stocks of onions maintained by the federal government is 300,000 metric tonnes, up from 100,000 metric tonnes three years ago, said a statement issued by the Ministry of Consumer Affairs, Food and Public Distribution.
“The onion buffer has played a key role in ensuring availability of onion to the consumers at affordable prices and in maintaining price stability,” said the statement.
Onions are being sold at a price range of 40-45 Indian rupees (48-54 U.S. cents) per kilogram in Delhi and its surrounding areas, which is said to be a rise of around 20-25 percent over the past few months.
The commodity’s price rise is mainly attributed to the combined effect of storage wastage and reduced arrivals in markets. A report by the Indian Express quoted a trader as saying that, due to the unseasonal rains earlier in the year and the exceptionally high temperature over the past few weeks, the farmers had reported above-average storage losses.
The south-western state of Maharashtra is the biggest onion producing state in India, following by the southern state of Karnataka and the western state of Gujarat.– NNN-PTI