Onion Price Hike: The recent escalation in essential commodity prices, including onions and tomatoes, draws government attention to stabilize the market. With a focus on relieving consumers from the impact, the government’s decisive steps aim to rectify the situation. In an exclusive conversation with CNBC-Awaz, Consumer Affairs Secretary Rohit Kumar Singh elaborated on the strategic approach mirroring the successful tactics employed for tomatoes.
Swift, Well-Considered Decisions
Consumer Secretary Rohit Kumar Singh emphasized the government’s timely and astute decisions to address market fluctuations. As supply increases, prices are anticipated to decrease. The vigilance extends from the highest echelons, with a Group of Ministers (GOM) chaired by the Home Minister closely monitoring the situation. Prioritizing citizens’ welfare remains a cornerstone of the government’s approach.
Import Duty and Rationale
Singh clarified that imposing import duty on onions is a calibrated step, taken in the interest of both farmers and consumers. The recurring trend of onion price hikes during festivals and the adverse impact of rain on production warranted this measure. The government procured 3 lakh tonnes of onions from farmers, but rain-induced quality deterioration prompted concerns of artificial price inflation. Imposing import duty was a strategic move to augment domestic availability.
Procurement Plans and Price Mitigation
The government’s acquisition of 2 lakh tonnes of onions is already in progress, with 3 lakh tonnes already secured. Onions are sourced from Maharashtra and Madhya Pradesh through National Agricultural Cooperative Marketing Federation (NAFED) and National Consumer Cooperative Federation (NCCF). Distribution will be tailored to demand, facilitating increased supply in areas with elevated prices. Presently, 5,000 tonnes have been distributed, helping stabilize onion prices in Delhi-NCR.
Tomato Price Paradigm
Drawing a parallel with tomatoes, Singh highlighted the government’s efforts in successfully reducing tomato prices. The same approach is being replicated for onions, aligning with the government’s commitment to providing affordable essentials. Government intervention aims to counter market fluctuations and restore equilibrium. Until the situation normalizes, the government remains resolute in its intervention endeavors.
