Centre buys 71,000 tons of onion for buffer stock, retail prices to ease with monsoon

The Indian government has taken measures to stabilize onion prices by purchasing nearly 71,000 tonnes of onions for its buffer stock this year. The procurement is part of a larger target to acquire 5 lakh tonnes of onions to mitigate price fluctuations in the market. With the onset of normal monsoon conditions across most regions, authorities anticipate a gradual easing of retail onion prices.

Data compiled by the Department of Consumer Affairs reveals that the all-India average retail price of onions was recorded at Rs 38.67 per kilogram on Friday, with the modal price standing at Rs 40 per kilogram.

A senior official from the Department of Consumer Affairs noted that, as of June 20th, the government has successfully procured 70,987 tonnes of onions. This procurement figure is slightly lower than the 74,071 tonnes acquired during the same period last year.

The buffer stock acquisition is a strategic move by the government to maintain a stable supply of onions and prevent sudden spikes in prices that can burden consumers.