New Delhi: The government has stepped up efforts to check onion prices by increasing sales from "buffer stock" in the wholesale markets in the wake of a surge in retail prices after the recent removal of export duty. The Centre has started releasing onions from its "buffer stock" in the wholesale markets of Delhi and other major cities, Consumer Affairs Secretary Nidhi Khare said on Monday. The government plans to retail onions at subsidised rates across the country. The government had removed the minimum export price of $550 per tonne on onions 10 days ago.

Khare said, "We expected a jump in prices after the removal of export duty. With a buffer stock of 4.7 lakh tonnes and increased area for Kharif sowing, we expect onion prices to remain under control." The government is planning to increase retail sale of onion at a subsidized rate of Rs 35 per kg across India. In this, more attention is being given to those cities where prices are higher than the national average.

According to official data, the retail price of onion in Delhi was Rs 55 per kg on September 22, up from Rs 38 per kg in the same period a year ago. In Mumbai and Chennai, prices have reached Rs 58 and Rs 60 per kg, respectively. The government has been selling onion at Rs 35 per kg since September 5 through mobile vans and shops of National Cooperative Consumer Federation of India (NCCF) and National Agricultural Cooperative Marketing Federation of India (NAFED) in Delhi and other state capitals.

Edible oil prices rise after import duty hike

Regarding edible oils, he acknowledged the price hike following the recent import duty hike and said the move was taken to protect domestic farmers. The government had raised import duty on crude palm oil by 20 per cent and processed sunflower oil by 32.5 per cent with the aim of supporting domestic oilseed farmers and processors.

Regarding tomatoes, Khare said the government will monitor the trends and intervene if needed. With domestic tur and urad production remaining good and pulses imports on the rise, Khare expects stability in pulses prices in the coming months.