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The Consumer Affairs Ministry on Saturday said the government’s initiative to sell subsidized onion since September 5 has led to a drop in prices in major cities within a few days. The retail price of onion in Delhi has come down from Rs 60 to Rs 55 per kg, while in Mumbai it fell from Rs 61 to Rs 56 per kg. In Chennai, the retail price fell from Rs 65 to Rs 58 per kg, the ministry said in a statement.
Onion sold at Rs 35 per kg
The government has started selling onions at a subsidized rate of Rs 35 per kg through mobile vans and outlets of NCCF and NAFED. The programme, which started in Delhi and Mumbai, has now spread to other major cities including Chennai, Kolkata, Patna, Ranchi, Bhubaneswar and Guwahati. Given the rising demand, the government has decided to increase the number of subsidized onions and expand distribution channels to include e-commerce platforms, Kendriya Bhandar outlets, and Mother Dairy’s Safal stores.
Dual transport strategy being implemented
The government has also started bulk disposal of onions in major cities. This has already started in Delhi, Mumbai, and Chennai, and there are plans to extend it to Hyderabad, Bengaluru, and Kolkata, and eventually to all state capitals. A dual transportation strategy involving both road and rail networks is being implemented to improve logistics supply and reduce post-harvest losses. The Department of Consumer Affairs is working closely with state governments to ensure targeted supply based on demand and price trends. The ministry said that with a buffer stock of 4.7 lakh tonnes of onions and an increase in kharif sowing area compared to last year, “the government expects onion prices to remain under control in the coming months.” It said a combination of improved retail and wholesale strategies will stabilize prices and ensure wider availability of affordable onions.
