The top 7 steps the government takes to control rising onion prices are buffer stock release, retail subsidies, and market interventions.
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As onion prices continue to rise, the government has implemented several actions to stabilize the market.
From releasing buffer stock to expanding retail subsidies, these efforts aim to provide relief to consumers while supporting farmers.
Here are the 7 key steps the government is taking to manage the onion price surge.
1. Releasing Buffer Stock
The government offloads onions from its 4.7 lakh tonne buffer stock to wholesale markets in cities like Delhi and Mumbai. This helps increase supply, reducing the strain on prices during high demand.
Fact: Buffer stock is strategically stored to prevent sudden price hikes during shortages.
2. Expanding Subsidized Onion Sales
Subsidized onions are being sold at Rs 35 per kg nationwide, especially in cities where market prices have risen sharply. This move provides immediate relief to consumers facing higher prices.
3. Boosting Kharif Onion Production
The sowing area for onions during the kharif season has expanded significantly this year. As new crops arrive in the market next month, prices are expected to stabilize further.
Insight: A larger sowing area means higher production, which helps prevent shortages.
4. Mobile Vans for Affordable Onions
To make affordable onions easily accessible, the government has deployed mobile vans in Delhi and other major cities. These vans, operated by NAFED and NCCF, sell onions directly to consumers at Rs 35 per kg.
Fact: Mobile vans offer quick access to essential goods, helping consumers avoid inflated market prices.
5. Lifting Export Restrictions
The government has removed the USD 550 per tonne minimum export price on onions to balance domestic supply and international demand. This move helps manage surplus stocks while stabilizing the domestic market.
6. Adjusting Import Duties to Support Farmers
The government has raised import duties on crude palm oil to 20% and refined sunflower oil to 32.5% to protect domestic farmers and processors. This encourages local production and reduces dependency on imports.
Insight: Adjusting import duties helps create a more balanced market for farmers and consumers.
7. Monitoring Prices of Other Commodities
The government also closely monitors the prices of tomatoes, pulses, and edible oils. With strong forecasts for tur and urad production and increased imports, prices for these staples are expected to remain stable.
Fact: The government is prepared to intervene to prevent price spikes in essential commodities.
Conclusion: A Balanced Approach to Price Stability
The government’s multi-faceted approach aims to balance supply and demand, stabilize prices, and support farmers. With the upcoming kharif onion crop and ongoing interventions, consumers can expect relief from rising prices in the coming months.
Explore our other articles for more updates on government actions and market trends.
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