Centre takes steps to cool onion prices amid fresh supply shock

A fresh supply shock triggered by deficient monsoon has led to a surge in onion prices even as the Centre begins releasing stocks from its reserves to cool prices amid high festive-season demand.

- Zia Haq

Onion prices have more than doubled in a fortnight in several states. Most vegetables have become expensive again, retailers said, driven by demand from households, eateries and street-food vendors ahead of Diwali.

The government will continue to sell onions in about 16 cities from its buffer stock to stem the current inflationary spell, an official said.