Govt’s Subsidised Onion Sale Brings Down Prices in Major Cities, Expansion Planned

New Delhi: The government's subsidised onion sale initiative, launched on September 5, has quickly resulted in lower prices across major cities within days, the consumer affairs ministry announced on Saturday.

In Delhi, retail onion prices dropped from Rs 60 to Rs 55 per kg, while in Mumbai, prices fell from Rs 61 to Rs 56 per kg. Chennai saw a reduction from Rs 65 to Rs 58 per kg, according to a ministry statement.

The government has started selling onions at a subsidized rate of Rs 35 per kg through mobile vans and outlets of NCCF and NAFED.

Initially launched in Delhi and Mumbai, the program has expanded to other major cities like Chennai, Kolkata, Patna, Ranchi, Bhubaneswar, and Guwahati.

To meet rising demand, the government plans to increase the supply of subsidized onions and widen distribution channels, including 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 transport system using both road and rail networks is in place to improve logistics and minimize post-harvest losses.

The Department of Consumer Affairs is collaborating with state governments to ensure efficient distribution based on demand and price trends.

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 stable in the coming months.

This combined retail and wholesale strategy aims to stabilize prices and ensure affordable onions are available across the country, the ministry added.

(With PTI inputs)