The latest increase in onion prices has been causing additional stress on the budgets of households, as sugar prices too are also rising. However, the government is now taking a supply-based measure to control the effect on consumers.
Onion Price Increase Leads to Government Intervention
The onion price has increased by about 45% during the period between August 22 and last year and by 19% from the previous month, with an average price of Rs 42 per kg. In Delhi, the retail price of onion increased to Rs 65 per kg from Rs 35 per kg last year. In order to control the increase in prices, Kanda Express will be launched by the Centre from Monday.
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What is causing the increase in onion prices?
A 5–7% drop in Maharashtra’s kharif onion production has pushed prices higher. However, NAFED and NCCF have procured around 1.2 lakh tonnes as buffer stock, which will be gradually released in high-price markets.
Sugar Price Rise Adds to Household Pressure
Onion is not the only cooking ingredient to become costlier; retail sugar prices have also risen significantly. Unpackaged sugar was available at Rs 62.50/kg on August 22, which is a 34% increase from one year ago and a 28.5% increase from last month. Prices in Delhi and Mumbai were Rs 65 and Rs 69/kg, respectively.
Should Consumers Expect Costlier Kitchen Staples?
The rise in onion and sugar prices has raised concerns about household expenses. However, it does not necessarily mean that all kitchen staples will remain expensive. The Centre says sufficient onion stocks are available and will be released in high-price markets. Kanda Express will help move additional supplies to these areas. For consumers, the impact will depend on how quickly the stocks reach retail markets and bring prices down. If distribution is effective, the move could provide short-term relief.
