As the issue of onion often becomes contentious issue, the government has recently taken good steps to moderate the onion price. The government recently has taken a pre-emptive measure by announcing a ban on onion export to ensure availability to domestic consumers at reasonable rates during the lean season before the Kharif onion arrival. While the rate at which retail prices increase had been moderated to some extent, recent instances of heavy rain fall in the major growing districts of Maharashtra, Karntaka and Madhya Pradesh had caused damage to standing Kharif crop, stored onion and seed nurseries. These developments on the weather front have resulted in sharp increase in onion prices.
The government has built up onion buffer stock from the Rabi onion – 2020. In order to moderate prices, onion from the buffer stock is being released in calibrated manner from second half of September, 2020 to major mandis, to retail supplier such as Safal, Kendriya Bhandar & NCCF and also to State Governments. More will be done in the coming days.