Nafed to boost onion supply in Delhi; Mother Dairy asked to cut price

New Delhi: To check rising onion prices, the Centre 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 in a high-level meeting chaired by Consumer Secretary Avinash K 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 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.

The government said, various commitees will constantly review the onion supply and price situation and take appropriate and immediate interventions.