Centre Steps Up Onion Buffer Release, Cuts Sugar Stock Limits
Government releases onion buffer stocks via rail and road, and tightens sugar stock holding limits to curb hoarding.
With onion and sugar prices remaining elevated for a second straight week ahead of the festive season, the Union Consumer Affairs Ministry on Tuesday said it has begun a calibrated release of onion buffer stocks. The supplies are being moved by both rail and road to major consumption centres to improve availability and moderate seasonal price pressures.
Two 'Kanda Express' trains have been dispatched from Nashik, Maharashtra, to Delhi. The first carried 450 metric tonnes (MT), of which 140 MT has been distributed across Varanasi, Lucknow, Chandigarh and Amritsar. The second rake, carrying 840 MT, reached Chennai on August 31; the Tamil Nadu government plans to distribute these onions through the Public Distribution System, with one kilogram per ration card.
In addition, around 1,000 MT of onions are being moved by road to major markets. Retail intervention has been expanded to 19 cities, with over 30 trucks deployed to ensure widespread availability. The ministry said the buffer releases have already improved market supply and helped ease prices.
On sugar, the government has reduced the stock holding limit for dealers from 4,000 quintals to 2,000 quintals, effective September 15 to November 30. The limit remains at 4,000 quintals for Kolkata and its extended metropolitan areas. Dealers must also not hold any stock for more than 30 days from the date of receipt. The measures are aimed at preventing hoarding and speculative trading, and ensuring smooth movement of sugar through the supply chain for continuous availability at reasonable prices.