Delhi's retail market witnessed an average cost of Rs 78 per kilogram for onions on Monday, as per government data. Meanwhile, the mean onion price across India stood at approximately Rs 50.35 per kilogram nationwide. The figures provided by the Department of Consumer Affairs, earlier this week, revealed a range from a minimum price of Rs 17 per kilogram to a maximum of Rs 83 per kilogram, with a modal price of Rs 60 per kilogram, as reported by the PTI.
Local sellers are offering the essential commodity at a rate of Rs 80 per kilogram, while it can be purchased at Rs 75 per kilogram on e-commerce platforms such as Bigbasket and Otipy.
Starting from October 29 and extending until December 31, the government has enforced a Minimum Export Price (MEP) of $800 per tonne for onions. This measure was primarily aimed at increasing the availability of onions in the domestic market.
The MEP of $800 per tonne roughly equates to Rs 67 per kilogram. This pricing regulation applies to all onion varieties except for Bangalore Rose and Krishnapuram onions, as well as for onions in cut, sliced, or powdered forms.
As mentioned in the statement issued on Saturday, the imposition of the MEP is a proactive measure to maintain an adequate supply of onions for domestic consumers at affordable prices. This action is being taken in response to the diminishing quantity of stored Rabi 2023 onions.
In a press release on Monday, the Ministry of Consumer Affairs, Food and Public Distribution stated that the Department of Consumer Affairs is is continuously monitoring onion exports and prices on a daily basis to ensure stable domestic prices and availability for consumers.
Starting from the second week of August, onions from the reserve stock have been consistently distributed to significant consumption hubs across the nation. They have also been made available to retail consumers at a price of Rs 25 per kilogram via mobile vans managed by NCCF and NAFED.
The government has reported that its decision to enforce the Minimum Export Price (MEP) has resulted in an immediate price adjustment in the markets of Maharashtra.
However, tensions are mounting owing to the depletion of stored Rabi onions and delays in the arrival of Kharif onions. This has led to a constrained supply situation, resulting in price increases in both wholesale and retail markets.