Will the Centre Start Releasing Onion From 3 Lakh Tonnes Buffer Stock Next Month to Control Prices?

Synopsis
Key Takeaways
- 300,000 tonnes of onions procured for price stability.
- Release to start in September.
- Prices of vegetables like potato, onion, and tomato are under control.
- Tomato prices influenced by localized factors.
- NCCF selling tomatoes at minimal profit margins.
New Delhi, Aug 8 (NationPress) The Indian government has successfully procured 300,000 tonnes of onion this year for its price stabilisation buffer. A systematic release from these stocks is anticipated to commence in September to maintain price stability, as stated by the Ministry of Consumer Affairs, Food & Public Distribution on Friday.
Notably, in contrast to previous years, the prices of essential vegetables such as potato, onion, and tomato are being kept in check this monsoon season. The increase in production during the 2024-25 period compared to the previous year is expected to ensure ample supply and significantly lower retail prices, as indicated in the ministry's statement.
"Prices of food commodities have largely remained stable and well-managed throughout this calendar year. Currently, the prices of most commodities monitored by the Department of Consumer Affairs are either stable or on a downward trend year-on-year. The reported 14% drop in the cost of a homemade thali in July 2025 exemplifies the ongoing moderation of food inflation during that month," the ministry added.
The retail prices of tomatoes across various regions in the country are being influenced by temporary localized factors rather than fundamental demand-supply issues or production deficits, according to the statement.
In this scenario, the National Cooperative Consumers’ Federation of India (NCCF) has been sourcing tomatoes from Azadpur Mandi since August 4, selling them to consumers at minimal profit margins. This initiative mirrors the NCCF's previous efforts.
To date, the NCCF has sold 27,307 kgs of tomatoes at retail prices ranging between Rs 47 and Rs 60 per kg, depending on procurement costs. Sales are being facilitated through the NCCF’s permanent outlets at Nehru Place, Udyog Bhawan, Patel Chowk, and Rajiv Chowk, as well as through 6–7 mobile vans operating in various locations across the city, according to the official statement.
The current average retail price of tomatoes in Delhi stands at Rs 73 per kg, primarily due to heavy rainfall in the northern and north-western regions since the last week of July. This weather-related disruption caused prices to surge to as high as Rs 85 per kg by the end of July. However, with the recovery and stabilization of daily arrivals at the Azadpur mandi over the past week, both mandi and retail prices have started to decline.
Conversely, major cities such as Chennai and Mumbai, which have not faced abnormal weather conditions recently, have not seen similar price increases. The average retail prices of tomatoes in Chennai and Mumbai are Rs 50 per kg and Rs 58 per kg, respectively—significantly lower than those in Delhi. Currently, the all-India average retail price of tomatoes is Rs 52 per kg, which is still lower than Rs 54 per kg last year and Rs 136 per kg in 2023, the statement concluded.