The soaring onion prices ahead of the Diwali festival have sparked concerns among consumers across various states. Onions, a staple ingredient in the diverse Indian cuisine, have reached an alarming ₹100 per kilogram, prompting immediate actions from both state and central governments.

Decoding government's efforts to tackle onion price surge

The Great Indian festive season the country is witnessing a sharp increase in onion prices and the next report finds out the possible reasons for the spike in onion prices take a look.

India: Decoding government's efforts to tackle onion price surge

<p>The Union government of India has taken measures to curb rising onion prices in the domestic market by imposing a 40 per cent&nbsp;duty on onion exports until December 31. This move was confirmed by a government notification reported by news agency PTI.</p>

<p>The government notification clearly states, "Government imposes 40 per cent&nbsp;duty on onion exports till December 31," thereby emphasising the temporary nature of this export duty.</p>

<p>As per reports, India stood at number one amoung the world's top onion-producing countries in 2020-2021. India produced 26.6 million tonnes, China 24.2 million tonnes and Egypt 3.3 million tonnes. Meanwhile, the production of onion in India in 2020-2021 was 26.6 million tonnes in 2021-22, it was 31.7 million tonnes and in 2022-2023, it stands at 31.0 million tonnes.&nbsp;India's top onion-producing states are Maharashtra (43 percent), MP (16 percent) and Gujarat (9 percent).&nbsp;</p>

<h2><strong>Context: Rising onion prices</strong></h2>

<p>This increase in export duty is a response to concerns that onion prices are likely to surge in September. To address this issue, the government had recently announced the immediate release of onions from its buffer stock in specific regions. The aim was to stabilise prices until the arrival of the new crop in October.</p>

<h2><strong>Distribution channels and stockpiling</strong></h2>

<p>The government has been actively exploring various distribution channels for onions, including e-auctions, e-commerce platforms, and partnerships with state authorities. These partnerships aim to offer discounts on onions through retail outlets managed by consumer cooperatives and corporations.</p>

<p>Currently, the government holds a significant stockpile of 300,000 metric tonnes of onions within the Price Stabilisation Fund (PSF) to manage any unforeseen price spikes during periods of low supply.</p>

<p><strong>Also read |&nbsp;</strong><a href="https://www.wionews.com/india-news/pm-modi-addresses-g20-digital-economy-ministers-meet-announces-new-ai-powered-language-translation-platform-626940">PM Modi addresses G20 Digital Economy Ministers' meet, announces new AI-powered language translation platform</a></p>

<h2><strong>Price trends</strong></h2>

<p>Government data indicates that the cost of onions has experienced a slight increase. As of August 10, the all-India retail price for this essential kitchen staple stood at Rs 27.90 ($0.34) per kilogram. This represents an increase of just over Rs 2 per kilogram compared to the same period last year.</p>

<h2><strong>Buffer stock and procurement</strong></h2>

<p>To manage onion prices effectively, the National Cooperative Consumers' Federation of India (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED) had earlier procured 150,000 metric&nbsp;tonnes of onion&nbsp;each from Maharashtra and Madhya Pradesh.</p>

<p>Furthermore, the government has initiated a pilot project in collaboration with the Bhabha Atomic Research Centre (BARC) to irradiate onions, extending their shelf life.</p>

<h2><strong>Buffer expansion for price stability</strong></h2>

<p>The annual buffer for onions has been significantly increased, rising from 100,000 metric&nbsp;tonnes in 2020-21 to 300,000 metric&nbsp;tonnes in 2023-24. This expansion is attributed to the procurement of Rabi (winter crops) season onions, which are released in high consumption areas during lean seasons.</p>

<p>A statement from the Ministry of Consumer Affairs highlighted the vital role played by the onion buffer in ensuring consumer access to onions at affordable prices while maintaining price stability.</p>

<p><strong>Also watch |&nbsp;Gravitas Plus: What’s happening in India’s aviation sector?</strong></p>

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<h2><strong>Seasonal supply and demand</strong></h2>

<p>India typically receives nearly 65 per cent of its onion supply from the Rabi season, harvested from April to June. These onions meet consumer demand until the Kharif crop (harvested at the end of monsoon season) is harvested in October-November.</p>

<p>In sum, the government's imposition of an export duty on onions reflects its commitment to stabilise domestic prices, enhance distribution mechanisms, and manage the impact of seasonal variations on onion availability and affordability.</p>

<p><em>(With inputs from agencies)</em></p>

<p>&nbsp;</p>

<p><strong>WATCH WION LIVE HERE:</strong></p>

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The Union government of India has taken measures to curb rising onion prices in the domestic market by imposing a 40 per cent duty on onion exports until December 31.

The Union government of India has taken measures to curb rising onion prices in the domestic market by imposing a 40 per cent duty on onion exports until December 31. This move was confirmed by a government notification reported by news agency PTI. The government notification clearly states, "Government imposes 40 per cent duty on onion exports till December 31," thereby emphasising the temporary nature of this export duty. As per reports, India stood at number one amoung the world's top onion-producing countries in 2020-2021. India produced 26.6 million tonnes, China 24.2 million tonnes and Egypt 3.3 million tonnes. Meanwhile, the production of onion in India in 2020-2021 was 26.6 million tonnes in 2021-22, it was 31.7 million tonnes and in 2022-2023, it stands at 31.0 million tonnes. India's top onion-producing states are Maharashtra (43 percent), MP (16 percent) and Gujarat (9 percent). Context: Rising onion prices This increase in export duty is a response to concerns that onion prices are likely to surge in September. To address this issue, the government had recently announced the immediate release of onions from its buffer stock in specific regions. The aim was to stabilise prices until the arrival of the new crop in October. Distribution channels and stockpiling The government has been actively exploring various distribution channels for onions, including e-auctions, e-commerce platforms, and partnerships with state authorities. These partnerships aim to offer discounts on onions through retail outlets managed by consumer cooperatives and corporations. Currently, the government holds a significant stockpile of 300,000 metric tonnes of onions within the Price Stabilisation Fund (PSF) to manage any unforeseen price spikes during periods of low supply. Also read | PM Modi addresses G20 Digital Economy Ministers' meet, announces new AI-powered language translation platform Price trends Government data indicates that the cost of onions has experienced a slight increase. As of August 10, the all-India retail price for this essential kitchen staple stood at Rs 27.90 ($0.34) per kilogram. This represents an increase of just over Rs 2 per kilogram compared to the same period last year. Buffer stock and procurement To manage onion prices effectively, the National Cooperative Consumers' Federation of India (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED) had earlier procured 150,000 metric tonnes of onion each from Maharashtra and Madhya Pradesh. Furthermore, the government has initiated a pilot project in collaboration with the Bhabha Atomic Research Centre (BARC) to irradiate onions, extending their shelf life. Buffer expansion for price stability The annual buffer for onions has been significantly increased, rising from 100,000 metric tonnes in 2020-21 to 300,000 metric tonnes in 2023-24. This expansion is attributed to the procurement of Rabi (winter crops) season onions, which are released in high consumption areas during lean seasons. A statement from the Ministry of Consumer Affairs highlighted the vital role played by the onion buffer in ensuring consumer access to onions at affordable prices while maintaining price stability. Also watch | Gravitas Plus: What’s happening in India’s aviation sector? Seasonal supply and demand India typically receives nearly 65 per cent of its onion supply from the Rabi season, harvested from April to June. These onions meet consumer demand until the Kharif crop (harvested at the end of monsoon season) is harvested in October-November. In sum, the government's imposition of an export duty on onions reflects its commitment to stabilise domestic prices, enhance distribution mechanisms, and manage the impact of seasonal variations on onion availability and affordability. (With inputs from agencies) WATCH WION LIVE HERE:

Indian govt imposes 40% export duty on onions to curb soaring local prices

<p>The <a href="https://www.wionews.com/india-news/maharashtra-upset-over-thackerays-move-400-shiv-sena-workers-join-bjp-266344">Shiv Sena</a> on Tuesday targeted the Bharatiya Janata Party (BJP)-led Centre over the spike in the onion prices and the state of the Indian economy.</p>

<p>In its mouthpiece Saamna, the Sena stated, " At present, the economy is slowing down. But the government is not ready to accept. The prices of onion have reached Rs 200 per kilogram. The Finance Minister has also given a very childish answer on this issue. She said I do not eat onion-garlic, so do not ask me about onions. It seems the Prime Minister has no desire to resolve this issue."</p>

<p>"When Modi was not the <a href="https://www.wionews.com/opinions/economy-debate-narendra-modis-nda-versus-manmohan-singhs-upa-267271">Prime Minister</a> he had expressed concern over the rising prices of onions. While he was the Chief Minister of Gujarat he had stated that onion is a vital vegetable and added that the vegetable should be kept in the locker. Today, his policy has changed. Modi is now the Prime Minister and the economy is collapsing. Earlier, an unconscious person was cured with the smell of the onion. But that it not even possible now as the edible bulb has disappeared from the market," the editorial read.</p>

<p>"Pandit Nehru (Jawaharlal Nehru) and Indira Gandhi cannot be held responsible for the apocalyptic destruction of the country`s economy. The present government is not in a mood to listen to the experts. For them, the economy is like a stock market that has become speculative."</p>

<p>The former ally also raked up the issue of demonetization and said, " Very few people make decisions in the Prime Minister`s Office. These decisions are valid for their political and social programmes of the ruling party. But their decisions have marginalised the economic reforms. While taking decisions, such as demonetization, the Finance Minister of the country was kept in dark and also the Governor of the Reserve Bank of India protested, later he was removed."</p>

<p>The Shiv Sena also slammed the Centre for not doing enough to combat the menace of poverty.</p>

<p>"This time in the Global Hunger Index, out of 107 countries India has been positioned at 102. In 2014, India was in the 55th position and in the last five years, poverty has increased in the country while in the neighboring countries such as Nepal, Bangladesh, <a href="https://www.wionews.com/india-news/kulbhushan-jhadav-case-islamabad-insists-on-pakistan-representative-as-jhadav-gives-indian-side-power-of-attorney-to-represent-him-267156">Pakistan </a>it has reduced. There no work in the hands of the people and no food in their stomach. This is the condition of the common people of our country but the rulers are calling it development. Our economy is sick, but the Modi government is not ready to accept this either."</p>


The Shiv Sena on Tuesday targeted the Bharatiya Janata Party (BJP)-led Centre over the spike in the onion prices and the state of the Indian economy. In its mouthpiece Saamna, the Sena stated, " At present, the economy is slowing down.

The Shiv Sena on Tuesday targeted the Bharatiya Janata Party (BJP)-led Centre over the spike in the onion prices and the state of the Indian economy. In its mouthpiece Saamna, the Sena stated, " At present, the economy is slowing down. But the government is not ready to accept. The prices of onion have reached Rs 200 per kilogram. The Finance Minister has also given a very childish answer on this issue. She said I do not eat onion-garlic, so do not ask me about onions. It seems the Prime Minister has no desire to resolve this issue." "When Modi was not the Prime Minister he had expressed concern over the rising prices of onions. While he was the Chief Minister of Gujarat he had stated that onion is a vital vegetable and added that the vegetable should be kept in the locker. Today, his policy has changed. Modi is now the Prime Minister and the economy is collapsing. Earlier, an unconscious person was cured with the smell of the onion. But that it not even possible now as the edible bulb has disappeared from the market," the editorial read. "Pandit Nehru (Jawaharlal Nehru) and Indira Gandhi cannot be held responsible for the apocalyptic destruction of the country`s economy. The present government is not in a mood to listen to the experts. For them, the economy is like a stock market that has become speculative." The former ally also raked up the issue of demonetization and said, " Very few people make decisions in the Prime Minister`s Office. These decisions are valid for their political and social programmes of the ruling party. But their decisions have marginalised the economic reforms. While taking decisions, such as demonetization, the Finance Minister of the country was kept in dark and also the Governor of the Reserve Bank of India protested, later he was removed." The Shiv Sena also slammed the Centre for not doing enough to combat the menace of poverty. "This time in the Global Hunger Index, out of 107 countries India has been positioned at 102. In 2014, India was in the 55th position and in the last five years, poverty has increased in the country while in the neighboring countries such as Nepal, Bangladesh, Pakistan it has reduced. There no work in the hands of the people and no food in their stomach. This is the condition of the common people of our country but the rulers are calling it development. Our economy is sick, but the Modi government is not ready to accept this either."

Shiv Sena lashes at Modi govt over rising onion prices, state of economy

<p>In a bid to curb hoarding of <a href="https://www.wionews.com/business-economy/india-may-extend-onion-export-ban-to-february-to-cap-domestic-prices-263137">onions </a>in the wake of soaring prices, the Ministry of Consumer Affairs has revised with immediate effect the stock limits for wholesalers and retailers in the country.</p>

<p>According to an official statement issued on Tuesday, the stock limit for wholesalers has been set at 25 metric tonnes (MT) while the same has been set at 5 metric tonnes for retailers.</p>

<p>"Provided that an importer, being a wholesaler or retailer or dealer shall be exempted for the imported stock of onions," the statement said.</p>

<p>The Central government is closely monitoring the prices of onions. Cabinet Secretary Rajiv Gauba had on Monday chaired a meeting with Chief Secretaries of 11 major onion producing states to review the issue of rising prices.</p>

<p>The Centre is also importing 11,000 MT of onion from Turkey in addition to 6,090 MT from Egypt, in the backdrop of soaring onion prices in the Indian retail market.</p>

<p>According to the Ministry of Consumer Affairs, the Metals and Minerals Trading Corporation of India has placed the order, which will begin arriving in India later this month, while from Egypt the consignment will start reaching from mid-December.&nbsp;</p>


In a bid to curb hoarding of onions in the wake of soaring prices, the Ministry of Consumer Affairs has revised with immediate effect the stock limits for wholesalers and retailers in the country.

In a bid to curb hoarding of onions in the wake of soaring prices, the Ministry of Consumer Affairs has revised with immediate effect the stock limits for wholesalers and retailers in the country. According to an official statement issued on Tuesday, the stock limit for wholesalers has been set at 25 metric tonnes (MT) while the same has been set at 5 metric tonnes for retailers. "Provided that an importer, being a wholesaler or retailer or dealer shall be exempted for the imported stock of onions," the statement said. The Central government is closely monitoring the prices of onions. Cabinet Secretary Rajiv Gauba had on Monday chaired a meeting with Chief Secretaries of 11 major onion producing states to review the issue of rising prices. The Centre is also importing 11,000 MT of onion from Turkey in addition to 6,090 MT from Egypt, in the backdrop of soaring onion prices in the Indian retail market. According to the Ministry of Consumer Affairs, the Metals and Minerals Trading Corporation of India has placed the order, which will begin arriving in India later this month, while from Egypt the consignment will start reaching from mid-December.

Govt reduces onion stock limit amid rising prices

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