Onion Prices Slated to Drop Below ₹40 per Kg by January, Says Government

New Delhi: Indian consumers can expect a sigh of relief as onion prices are projected to get down to below Rs 40 per kilogram by January, according to Consumer Affairs Secretary Rohit Kumar Singh. This welcome news comes as a reprieve from the recent surge that saw retail prices exceeding Rs 80 per kg in Delhi.

Singh attributed the anticipated decline to the recent ban on onion exports until March, which was implemented to curb rampant price increases. He emphasized that the ban’s impact on farmers will be minimal, targeting instead traders exploiting price disparities between Indian and Bangladeshi markets. This move is expected to prioritize the needs of Indian consumers and bring much-needed stability to the market.

Onion inflation within the Consumer Price Inflation (CPI) basket has been a cause for concern, surpassing double digits since July and reaching a near four-year high of 42.1% in October. To address this issue, the government has taken proactive measures, including setting a Minimum Export Price (MEP) of USD 800 per tonne and imposing a 40% export duty on onions until December 31. These efforts, coupled with the export ban, are expected to bring significant relief to Indian consumers.

Despite a positive trend in wholesale price inflation for vegetables in October, onion prices remained stubbornly high, exhibiting an annual increase of 62.60%. To further stabilize prices and ensure affordability for consumers, the government is also implementing strategic interventions, such as the subsidized sale of buffer onion stock at Rs 25 per kg.