The central government has collected 2 lakh tonnes of onions to control onion inflation. However, this is expected to affect the economy and consumers. According to experts, onion growing has been affected by other issues, including climate change. In such a situation, the onion shortage may be felt in the next few days.
Inflation hit in September: Onion prices usually go up in September. At this time the old inventory is depleted and the new crop must wait for winter. For example, in the first half of 2017, wholesale onion prices fell. This led to widespread protests by farmers in Maharashtra and Madhya Pradesh.
Then in the second half of the year, when the government intervened in the markets to buy additional stock, prices began to rise. Even in 2019 and 2020, retail prices in many cities will be around Rs 90 per kg between September and November. This affected the budget of the general public.
Continuous increase in buffer stock: Data shows that onion buffer stock has been increased from 5,137 MT in 2017-18 to 100,000 MT in 2020-21. At the same time, the buffer stock has been increased to 200,000 MT by 2021-22.
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The official said the government was monitoring the prices of all essential items. Necessary steps have been taken to bring inflation under control. If the price of onions rises, it is removed from the buffer stock to keep it stable. This is the reason for the stock to rise too.