New Delhi: The Indian government’s intervention in the retail market by selling onions has had a positive impact on cooling prices. As a result, the consumer affairs ministry is now planning to sell higher quantities of onions at a subsidized rate of Rs 25 per kilogram in targeted cities. This move aims to prevent excessive release of onions in the wholesale market. Union consumer affairs secretary Rohit Kumar Singh stated that around 1 lakh tonne of onions will be offloaded in the retail market this month. The cities for retail sales will be identified based on data and historical price trends, ensuring effective price reduction measures. The sale of onions by government cooperatives has already helped lower prices in cities such as Indore, Bhopal, Raipur, and Jaipur.
Wholesale onion prices at Delhi’s Azadpur mandi, which is Asia’s largest wholesale market for fruits and vegetables, have already plummeted to Rs 30-40 per kilogram compared to Rs 60-65 per kilogram last week. However, the impact of this price drop in the retail market is yet to be seen. Officials expect prices to cool down further in the coming days in all cities. Traders attribute the fall in wholesale prices to government intervention, such as setting a minimum export price (MEP) of $800 per tonne on onions and the arrival of fresh crops in mandis.
In addition to onions, the Food Corporation of India (FCI) has also sold 2.9 lakh tonnes of wheat from its buffer stock. This sale is part of the government’s open market sale scheme (OMSS) and aims to boost domestic supplies and curb prices. The government plans to sell 100 lakh tonnes of wheat through OMSS by March 31, 2024.
Overall, the government’s efforts to stabilize onion prices through retail interventions and regulating exports have shown promising results. By providing onions at a reduced price in multiple cities, the government is prioritizing affordability and accessibility for consumers. This step will not only help in managing onion prices but also ensure the availability of onions to all sections of society. With the implementation of such measures, the government aims to create a favorable market environment for consumers and promote overall economic stability in the country.
Unique Perspective:
The government’s decision to offer onions at a reduced price in multiple cities highlights its commitment to addressing the concerns of consumers regarding rising onion prices. By directly intervening in the retail market and offloading onions at a subsidized rate, the government is actively working to alleviate the burden on consumers and stabilize prices. This proactive approach demonstrates the government’s determination to maintain a favorable market environment and prioritize the well-being of its citizens. It also showcases the government’s ability to adapt and implement effective strategies to address economic challenges and ensure affordability for essential commodities like onions.
