The Indian government ruled out fresh curbs on onion exports while launching buffer-stock sales at ₹35 per kg to manage rising retail prices, consumer affairs secretary Nidhi Khare said on Thursday. The move comes amid retail onion prices nearly doubling from ₹28 per kg last year to ₹55.4 currently, according to Hindustan Times data cited by livemint.com.
Khare spoke after flagging off mobile vans distributing onions at the subsidized rate to consumers. She emphasized that the government holds sufficient onion stocks to meet domestic demand and will rely on buffer-stock releases and market interventions rather than restricting exports. The buffer-stock sales aim to contain the seasonal price surge ahead of the festive season.
This approach contrasts with previous periods when export curbs were imposed to control domestic prices. The government’s decision reflects confidence in current stock levels and a preference for market-based measures over trade restrictions. The retail price spike highlights ongoing supply-demand pressures in the onion market, a staple in Indian households, making the buffer-stock strategy critical to stabilizing prices.
The buffer-stock sales at ₹35 per kg began this week, with mobile vans deployed to distribute onions directly to consumers. This initiative is part of the government’s broader efforts to manage essential commodity prices during peak demand periods, ensuring affordability for consumers without disrupting export commitments.