Centre to release onion stocks to tame inflation

Onion supplies are tightening in some markets and the kitchen staple could soon see an inflationary spell because of a lean annual season when stocks dip, wholesalers and analysts have said.

Unlike tomatoes or most greens, whose exorbitant prices have adversely impacted millions of households, in the case of onions, the government maintains nearly 300,000 tonne of reserves. It can, therefore, intervene to cool down prices by releasing stocks when supplies show signs of bottoming out.

Union consumer affairs secretary Rohit Kumar Singh on Thursday held a meeting with senior officials of NAFED and NCCF, two state-run food agencies, to finalise “modalities” for releasing onions from a centrally-held buffer.