The government's subsidised onion sale initiative, launched on September 5, has led to a reduction in onion prices across several major cities within days, according to the Ministry of Consumer Affairs. This initiative aims to ease the burden on consumers amid rising prices, offering onions at a subsidised rate of Rs 35 per kg.
In key cities like Delhi, Mumbai, and Chennai, retail onion prices have already dropped. In Delhi, the price fell from Rs 60 to Rs 55 per kg, while in Mumbai, prices reduced from Rs 61 to Rs 56 per kg. Chennai saw a sharper decline, with prices dropping from Rs 65 to Rs58 per kg.
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The subsidised onion sale, initially rolled out in Delhi and Mumbai, has now been expanded to other cities, including Chennai, Kolkata, Patna, Ranchi, Bhubaneswar, and Guwahati. Onions are being sold at the subsidised rate through mobile vans and outlets operated by the National Cooperative Consumers’ Federation (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED).
To meet the growing demand, the government has ramped up its supply of subsidised onions and broadened its distribution channels. These now include e-commerce platforms, Kendriya Bhandar outlets, and Mother Dairy’s SAFAL stores. In addition, wholesale onion disposal has commenced in major cities like Delhi, Mumbai, and Chennai, with plans to extend this initiative to Hyderabad, Bengaluru, Kolkata, and eventually all state capitals.
The initiative is backed by a robust logistics strategy that leverages both road and rail networks to streamline the transportation of onions. This dual strategy aims to improve supply efficiency and reduce post-harvest losses, thereby maintaining a steady flow of onions to urban markets.
The Ministry of Consumer Affairs, in collaboration with state governments, is actively monitoring demand and price trends to ensure that the supply is targeted where it's needed most. The government’s buffer stock of 4.7 lakh tonnes of onions, coupled with an increased kharif sowing area this year, is expected to help keep onion prices under control in the months ahead.
The combined strategy of retail and wholesale onion sales is expected to stabilize prices and ensure the availability of affordable onions nationwide, according to the ministry. The initiative demonstrates the government’s commitment to mitigating price inflation and easing the impact on consumers during a period of fluctuating agricultural prices.
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