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The rising prices of onions in India have become a cause for concern for the government, leading to the decision to release the buffer stock in an effort to control the escalating costs. The retail price of onions has reached Rs 67 per kg in the national capital, while the all-India average retail price is Rs 58 per kg, according to government data.
The decision to release the buffer stock is a strategic move to ensure affordability and stabilize the market. The government aims to intervene in the supply chain and alleviate the pressure on consumers by injecting additional supply. This measure will hopefully bring down the prices and prevent further inflation.
This situation highlights the importance of government intervention in ensuring price stability and addressing issues related to essential commodities. The release of the buffer stock demonstrates the government's commitment to address the concerns of its citizens and manage the fluctuations in the market. This intervention, however, should be accompanied by long-term solutions to address the underlying factors contributing to volatile onion prices, such as production challenges and market speculation.
Source: Centre to offload buffer stock to control rising onion prices