Prices for onions have been increasing, going from Rs 30 per kg to Rs 40 per kg right now. On the basis of a probable shortage in supplies, experts have predicted that the commodity’s trajectory will rise dramatically to Rs 60–70 per kg in the retail market starting in early September.
For instance, an Indian household consumes 5 kg of onions each month, amounting to a domestic consumption of 15 million tonne every year.
As the price of the item increased, the central government started purchasing onions on August 22 at a rate of Rs 2,410 per quintal. Piyush Goyal, the minister of consumer affairs and food, stated during a press briefing that the action was being done to guarantee that both farmers and consumers benefited.
In contrast to the initial procurement goal of 3 lakh metric tonnes (mt), the government has boosted the onion buffer to 5 lakh metric tonnes (mt) for the current year. “This year, we purchased 3 lakh MT of onions, which caused prices to increase and farmers to make significant gains. The government has made the decision to purchase an extra 2 lakh mt. There are no restrictions on procurement, and if more were required, this number would be raised, the minister said.
The FOB (Free On Board) price, which represents the price at which products are shipped, was $320 per quintal. According to Goyal, “this translates into Rs 18–20 per kg of realisation for the farmers, which is significantly less than Rs 24.10 that we are offering.”
Onion is currently being sold for around Rs 40 per kilogramme around the nation. The largest onion markets in Asia, located in Maharashtra’s Pimpalgaon and Lasalgoan, achieved a wholesale price of Rs 2500 per quintal on August 10.
Onions from the buffer have already begun to be distributed by the government, with an emphasis on the largest markets within the states and union territories whose retail prices are higher than the national average or have significantly increased from the previous month.
Customers in various locations can purchase these commodities for Rs 25 per kilograms.
Prices for onions have been increasing, going from Rs 30 per kg to Rs 40 per kg right now. On the basis of a probable shortage in supplies, experts have predicted that the commodity’s trajectory will rise dramatically to Rs 60–70 per kg in the retail market starting in early September.
The government took action on August 19 and slapped a 40 percent levy on onion exports until December 31 with immediate effect to increase the domestic availability of the vegetable in anticipation of the price increase and out of concern that it would go the tomato way.
The government has pledged that the move will improve farmer welfare, nevertheless. “Our intervention in the tomato market benefited consumers, and prices considerably decreased. As a result, prices for 1.4 billion consumers have stabilised, while farmers have benefited from fair prices. With onions, we want to follow the same strategy,” Goyal said.
Production is strong.
Goyal asserts that this year’s onion crop appears to be strong and shouldn’t cause prices to climb. “The two most recent years we produced 317 lakh mt and 318 lakh mt, respectively. Although this year’s kharif sowing is slow, predictions indicate that the amount produced will remain constant. I see no issues with this product,” he remarked.
Goyal also maintains constant communication with the chief ministers of Maharashtra, Eknath Shinde and Devendra Fadnavis. “Deputy CM Ajit Pawar and I have had numerous conversations. To keep an eye on the situation, I am also in contact with the agriculture minister of Maharashtra and numerous other state ministers, he continued.
On August 22, Maharashtra’s deputy chief minister tweeted: “I spoke on the phone with Amit Shah and Union Minister Piyush Goyal from Japan. The Centre has made the decision to buy 2 lakh metric tonnes of onions. The Centre has declared that special purchasing centres will be established in Nashik and Ahmednagar to serve the needs of Maharashtra’s onion growers. Here, onions will cost Rs 2,410 for a quintal. The state’s onion producers will feel a great deal of relief as a result.
According to the Minister, onions are being purchased from a number of districts in Maharashtra, including Lasalgaon, Pimpalgaon, Umrane, Nampur, Manmad, and other states.
