Government subsidised onion sales bring relief, prices fall in major cities
The government’s subsidized onion sales initiative, which started on September 5, has led to price drops in major cities. (Photo: Shutterstock)
The government’s subsidised onion sales initiative, which started on September 5, has led to price drops in major cities within days, the Consumer Affairs Ministry said on Saturday.
In Delhi, the retail price of onion fell from Rs 60 to Rs 55 per kg, while Mumbai saw a drop 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.
The government has started selling onion at a subsidized rate of Rs 35 per kg through mobile vans and NCCF and NAFED outlets.
The programme, which started in Delhi and Mumbai, has now expanded to other major cities including Chennai, Kolkata, Patna, Ranchi, Bhubaneswar and Guwahati.
In response to the growing demand, the government has decided to increase the quantity of subsidized onions and expand distribution channels including e-commerce platforms, Kendriya Bhandar outlets and Mother Dairy’s SAFAL stores.
The government has also started wholesale sales of onions in major cities. It has already started in Delhi, Mumbai and Chennai, with plans to expand to Hyderabad, Bengaluru and Kolkata and eventually all state capitals.
A dual transportation strategy is being implemented, using both road and rail networks, to improve logistics efficiency and reduce post-harvest losses.
The Department of Consumer Affairs works closely with state governments to ensure targeted supply based on demand and price trends.
With a buffer stock of 4.7 lakh tonnes of onion and higher kharif sowing area compared to last year, “the government expects onion prices to remain under control in the coming months,” the ministry said.
It is expected that the combination of improved retail and bulk selling strategies will stabilize prices and ensure that affordable onions are widely available.
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First publication: Sep 14, 2024 | 3:05 PM IST