Onion crisis: Centre asks states to open buffer stocks

As onion prices hit the roof, the Centre on Tuesday said it wanted the state governments to step in by making available the kitchen staple through the buffer stocks from agri-marketing cooperatives.

Agriculture Minister Narendra Singh Tomar and Consumer Affairs Minister Ramvilas Paswan said the high prices of onions were transitory in nature and the situation would ease once the new crop of the bulb reaches the markets by early November.

Paswan said the state-run agri-marketing cooperatives such as NAFED have 35,000 tonnes of onions in buffer stocks and urged the state governments to make it available to the people.

He said the Centre had adopted a “wait and watch” approach till the buffer stock of onion gets exhausted before taking steps such as imposing stock limits and taking action against hoarders.

“At times, consumers have to pay a high price for farm items; and at times, farmers get less price for their produce. Our role is to balance this. We are aware of it and are taking several measures,” Agriculture Minister Tomar told reporters separately.

Paswan said the months of September, October, November was a “dangerous period” for crops such as onion and tomato as prices surge with increase in demand and shortage of supplies till the arrival of fresh crop.

Onions have been selling at Rs 70 per kg in the national capital and surrounding areas. A similar price trend was seen in several parts of the country. State agencies such as Nafed, National Cooperative Consumers' Forum of India and outlets such as Mother Dairy's Safal stores have been offering onions at Rs 22-24 per kg in the national capital region.

Onion prices have spiked in the last one month due to disruption in supplies from growing states such as Maharashtra after floods.