Onion Prices Stay Elevated Despite Buffer Stock Release
What Happened
Retail onion prices remain above ₹50 per kg in many cities despite government efforts to boost supplies. The main reasons are unseasonal rain during the rabi harvest, delayed monsoon-linked arrivals, and higher storage losses that reduced the quantity of quality onions reaching markets. To curb prices, the government has released buffer stocks and increased market interventions, but fresh kharif arrivals are expected to provide meaningful relief only in the coming months.
Key Takeaways
The issue is not overall production but the supply of market-ready onions. Weather-related crop damage and storage losses have tightened availability, keeping prices elevated despite government action.