Onion prices will not increase! Government bought thousands of tonnes of stock

Onion Price Hike: The central government has taken a big step to control the rising prices of onion. The government has purchased about 71,000 tonnes of onion for buffer stock. The prices of onion have crossed Rs 40. However, according to the data of the Department of Consumer Affairs, the average retail price of onion on Friday was Rs 38.67 per kg. The government hopes that the price of onion will fall in the near future.

Preparations to buy 5 lakh tonnes of onion this year
The government has set a target of purchasing 5 lakh tonnes of onion this year to keep prices stable. The government hopes that with the advancement of monsoon in most parts of the country, retail prices will also come down. A senior official of the Consumer Affairs Department said that till June 20, the central government has purchased 70,987 tonnes of onion as buffer stock. During the same period last year, 74,071 tonnes of onion was purchased.

He said that this year due to hot weather and less rain
Due to this, there is a possibility of a reduction of about 20 percent in the production of rubber. These reasons are also being blamed for the rising prices of onion. Despite this, the pace of purchase of buffer onions has been increased this year. The government will use this buffer stock to control the prices of onions. The government has been taking continuous steps since August last year to control the prices of onions. Earlier, 40 percent export duty was levied. After this, the minimum export price was increased to $ 800 per tonne in October 2024. Also, an export ban was also imposed on 8 December 2023.

An export ban was imposed in December.
These measures helped the government to control onion prices in the domestic market. The export ban was lifted on May 4, 2024 with a minimum export price of $550 per tonne and 40 percent export duty. This year, due to heatwaves and severe heat, the production of green vegetables decreased. Due to this, the prices of vegetables including tomatoes, potatoes, onions have increased. According to the data of the Ministry of Agriculture, onion production is expected to be around 254.73 lakh tonnes. Last year, about 302.08 lakh tonnes of onion was produced.