Onion prices 'moderate marginally' in Delhi: Govt

Onion prices have "moderated marginally" in the national capital, the government said Friday and decided to further boost supply from buffer stocks to bring down rates of the kitchen staple.

The Department of Consumer Affairs reviewed the price and availability situation of onion in Delhi at a high level meeting chaired by Consumer Affairs Secretary Avinash K Srivastava with all the stakeholders concerned, an official statement said.

Currently, onion prices are ruling at Rs 30-40 per kg in the national capital. 

"It was observed that while the wholesale prices of onions had peaked during the middle of the month of October, they have now moderated marginally. To sustain the momentum, a decision was taken to further increase daily supply for Delhi from the existing buffer created under Price Stabilisation Fund (PSF)," it added.

During the meeting, measures to reduce gap in the prices at wholesale and retail levels were also discussed.

"Delhi government was advised to undertake supply of onions as was done during the previous high price year i.E. 2015 through its PDS (Public Distribution System) outlets," the statement said.

The Centre would closely monitor onion prices in the national capital and Delhi government would consider intervening in the market in case prices start hardening.

Mother Dairy was directed to increase supply of onion through its retail outlets 'SAFAL'. 

As per data available with the Horticulture Division under the Union Agriculture Ministry, sowing area of onion in the Kharif (summer) season has increased by 37 percent as compared to 2017.

Sowing of Kharif crops starts after arrival of monsoon season while harvesting begins from September. 

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The supply position of onions in the market has improved as harvesting has begun in Rajasthan, Sholapur in Maharashtra, Hubli in Karnataka and Kurnool in Andhra Pradesh, the statement said.

"This will improve availability in consuming areas, thereby, helping moderate prices in the coming days," it added.