The Government on Friday claimed that retail onion prices are not extraordinarily high to necessitate banning export of the key kitchen staple and buffer stock are being released to cool down the prices further while prices of food oils are still low despite the high international prices. On the other hand, experts say the higher prices of food oils will continue in the festive season and will start softening from December with arrival of new crops and a possible decline in global rates.

Addressing the press conference, Union Food Secretary Sudhanshu Pandey on Friday the average onion price was ruling at Rs 41.5 per kg on October 21, much lower than Rs 55.6 per kg in the year-ago period. State Governments are of the opinion that there is no possibility of sharp increase in onion prices in the coming days as domestic kharif onion production is estimated to be higher at 43.88 lakh tonne in the 2021-22 crop year (July-June) as against 37.38 lakh tonne in the year-ago period, he said.       

As per the Government data, retail prices were ruling at Rs  48/kg in Delhi, Rs 43/kg in Mumbai, Rs 37/kg in Chennai and Rs 57/kg in Kolkata on Friday. The Food Secretary said: “Onion prices are not extraordinarily high. The average prices are lower than last year.”          Market intervention has already been initiated to check prices of onion, but the rates have not reached anywhere close to the level that necessitates further immediate action as per the Essential Commodities Act, he said.      

Asked about plans to ban onion exports, the Secretary said, “There is no such scenario. Exports are lower than last year. It is better to monitor than speculate.”   Already more than 81,000 tonne of onion from the buffer stock has been released in the market where prices are rising at a fast pace, to improve availability and control prices, he said.