Govt's Subsidised Onion Sale Brings Relief, Prices Drop in Major Cities

The government’s subsidised onion sale initiative, launched on September 5, has led to price drops in major cities within days, the consumer affairs ministry said on Saturday.

In Delhi, retail onion price fell from Rs 60 to Rs 55 per kg, while Mumbai saw a decrease from Rs 61 to Rs 56 per kg. In Chennai, the retail price reduced from Rs 65 to Rs 58 per kg, the ministry said in a statement.

The government initiated the sale of onions at a subsidised rate of Rs 35 per kg through mobile vans and outlets of NCCF and NAFED.

The program, which began in Delhi and Mumbai, has since expanded to other major cities including Chennai, Kolkata, Patna, Ranchi, Bhubaneswar, and Guwahati.

Responding to the growing demand, the government has decided to increase the quantity of subsidised onion and expand distribution channels to include e-commerce platforms, Kendriya Bhandar outlets, and Mother Dairy’s SAFAL stores.

The government has also initiated wholesale disposal of onion in major cities. It has already commenced in Delhi, Mumbai, and Chennai, with plans to extend to Hyderabad, Bengaluru and Kolkata and eventually all state capitals.

A dual transportation strategy involving both road and rail networks is being implemented to improve logistics efficiency 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.

With a buffer stock of 4.7 lakh tonne of onions and increased kharif sowing area compared to the previous year, ”the government expects onion prices to remain under control in the coming months,” the ministry said.

The combination of enhanced retail and bulk sale strategies is anticipated to stabilize prices and ensure widespread availability of affordable onions, it added.

Inflation in India has moderated but still, there is a distance to cover, Reserve Bank Governor Shaktikanta Das said on Friday. The government has tasked the RBI to ensure that inflation remains at 4% with a margin of 2% on either side.

India’s retail inflation based on movement in the consumer price index (CPI) was at 3.65% in August, making it the second consecutive month of sub-4% inflation.