New Delhi: People queue up to buy onions being sold at Rs. 22 per kg in the national capital as government steps in to control the steep increase in onion prices, which prevails for over 20 days now.
The Arvind Kejriwal-led government have started supplying onions at Rs 22 per kilogramme across the city via mobile vans.
Consumers had become cautious in their approach towards buying onions and the demand is also in a steep decline.
The National Agricultural Cooperative Marketing Federation and National Cooperative Consumers Federation of India are offloading onion from the Central buffer stock to spur the supply and cut down the prices.
Traders further said that there is enough supply of stored onion of the previous year's crop in the country but its transportation has been affected because of heavy rains.
Much of the onion is stored in Maharashtra, where rains disrupted the transport of the kitchen staple to other parts of the country, said a wholesale trader from Lasalgoan in Maharasthra, Asia's largest onion market.
The state governments have been asked to boost supply in their states lifting central buffer stock. Some states like Delhi, Tripura and Andhra Pradesh have shown interest so far.
The Centre has a buffer stock of 56,000 tonnes of onion, of which 16,000 tonnes has been offloaded so far.
In Delhi, 200 tonnes a day is being offloaded. Besides, the Centre has discouraged export of onion by increasing the minimum export price and withdrawing incentives.
It is also cracking down on black markets. Besides rains, prices are under pressure on likely fall in Kharif production of this year owing to the less planted area under onion on account of excess rains.
Read: Onion prices remain high in Delhi; govt offers solution
