Centre directs Nafed to boost onion supply in Delhi

NEW DELHI: Rise in the prices of onions and that too in the election year has forced the government to check the escalating prices of the essential commodity.

In a preventive measure, the Centre on Friday directed co-operative Nafed to boost supply in the national capital from the buffer stock and also asked Mother Dairy to reduce the rates by Rs 2 per kg on the kitchen staple in all its Safal outlets.

A decision in this regard, was taken during a high-level meeting chaired by Consumer Secretary Avinash Srivastava, called to review the price and supply situation of onion with concerned stakeholders.

Currently, retail onion prices in the national capital are ruling in the range of Rs 30-40 per kg on tight supplies, as per the trade data.

“Arrivals of kharif crop is expected to increase significantly within a week. This would improve availability in consuming areas, thereby, helping moderate prices,” the ministry said in a statement.

Meanwhile, it was decided in the meeting that onion supplies in Delhi from the buffer stock under the Price Stabilisation Fund (PSF) should be increased by 2-3 times from the current

level so as to tide over any constraint in the interim supply of onions in the market, it said.

The implementing agency Nafed has been directed to increase the quantity supplied from the PSF stock, it added. A buffer stock of onion has been created by the Centre using the PSF to offload it in the market in times of tight supply and contain price rise.

That apart, the Mother Dairy has been asked to reduce the prices of onion by Rs 2 per kg on all variants.

“Mother Dairy agreed to reduce the rates from Rs 25.90 to Rs 23.90 for the

loose variant and from Rs 27.90 to Rs 25.90 for the packed variant at all its stores in Delhi,” the government added.

Mother Dairy's subsidiary Safal has 400 outlets in Delhi-ncr. With regard to kharif onion output, the government said that the Horticulture Commissioner has indicated that the area sown to the kharif onion is higher than the year-ago.

The arrival of kharif onion has commenced from Karnataka.