Govt to increase open market supply of onion in Delhi from buffer stock

The central government has decided to increase the open market supply of onion in Delhi from its buffer stock, created through the Price Stabilisation Fund, by two to three times from current levels. It also asked the Mother Dairy cooperatives chain to lower the price of onion sold through its outlets by Rs 2 to Rs 23.9 a kg.
 

There hasn’t been a big rise in retail onion prices here but the kharif crop output might be hit to some extent this year by drought in parts of Maharashtra, a prime supplier. This has already doubled wholesale onion prices in the state over the past week at the key Lasalgaon (Nashik district) market, to Rs 21.5 a kg.
 

However, noted central officials at a review meeting here this week, the kharif crop is higher than last year. And, new crop arrival is expected in two to three weeks, which should take care of supplies. In the interim, the government would use its stock. Around 150 tonnes are being sold in the open market of Delhi presently by the main government canalising agency, Nafed. More could be sold, if needed, to address a shortage due to less supply from wholesale markets in Maharashtra.