Government taking steps to check onion prices to Rs 35 a kg: Secretary Consumer Affairs

In response to a steep 42.18 per cent increase in vegetable prices as per CPI inflation data of October, driven largely by soaring onion prices, Consumer Affairs Secretary Nidhi Khare says the government is taking urgent steps to curb the impact on consumers.

India's overall retail inflation rose to 6.21 per cent in October, with food inflation reaching double digits at 10.87 per cent, the highest in over a year, as per the CPI data released on Tuesday.

Nidhi Khare, outlined government's initiatives to tackle rising onion prices, with a particular focus on stabilizing retail costs.


She said, "There is a situation of concern about the way onion prices have increased steadily in the retail market. Whether steps have been taken by the government. I would like to tell you that below our national average, there are many major states whose prices are privileging whether it is Maharashtra or Gujarat."

She added, "In such states of Uttar Pradesh, Bihar, Madhya Pradesh, Rajasthan, Telangana and Karnataka, the price of Onion is already low."

To further address price volatility, the government introduced bulk onion transportation through special trains, known as the "Kanda Express."

According to Khare, "The Kanda Express has already delivered onions twice to Delhi and once each to Guwahati and Chennai, which has had a positive effect on stabilizing prices." She added that the third Kanda Express arrived in Delhi last night, and its effect on local onion prices should be evident within the next day.

"Our goal is to bring down retail onion prices to around Rs. 35 per kilogram through these targeted interventions," Khare emphasized.

The spike in vegetable prices has intensified inflationary pressures, surpassing the Reserve Bank of India's (RBI) expectations.

A report by Union Bank noted that October's inflation exceeded the Monetary Policy Committee's (MPC) target of 4.8 per cent, with actual tracking above 5.5 per cent.

The report also highlighted that inflation excluding vegetable prices remains subdued at 3.6 per cent, suggesting the rise is largely because of vegetable prices, especially onion. However, it anticipates a potential correction in vegetable prices in the upcoming months.