Onion prices are expected to fall in India. A senior official of the Ministry of Consumer Affairs said on Wednesday that onion prices may fall further due to the arrival of the new Kharif crop. Currently, the average retail price of onion is Rs 54 per kg, which was more than Rs 60 recently.

Government support: Discounted sale of onions

The government has taken a special step to provide relief to consumers from the high prices of onion. Onion is being sold at a discounted rate of Rs 35 per kg in major cities like Delhi and NCR. This onion is coming from the buffer stock with the government. According to officials, so far 1.5 lakh tonnes of onion has been released into the market from the buffer stock, which has led to a fall in prices.

Effect of buffer stock

The Government of India has a buffer stock of 4.5 lakh tonnes of onion, which is helping in increasing availability in the market. Onions from the buffer stock are being transported to major consumer centers such as Delhi, Chennai, and Guwahati via railways. Officials said that about 4,850 tonnes of onion has been sent to these cities via railways in the last few weeks. This supply has reduced the shortage of onion in the market and put pressure on prices.

Relief due to increased supply of onions

The official said that the supply of onions from the buffer stock will continue until the stock is exhausted and the prices stabilize. Special attention is being paid to onion prices in Delhi because it is a sensitive market. In the coming days, 730 tonnes more onions are expected to be supplied to Delhi, which may lead to a further decline in prices.

Expectations from the new crop

Apart from this, production is also expected to increase from the new season's crop. This will further increase the supply of onion, and bring stability to prices. Officials said that onion prices may go down further in the coming days, which may provide relief to consumers.

Overall, onion prices are expected to fall further due to the contribution from the government and the new crop, which is good news for the common consumers.