Government’s Subsidized Onion Sale Drives Prices Down In Major Cities

The government announced on Saturday that its initiative to sell onions at subsidized rates has significantly lowered prices in major cities.

Launched on September 5, the Centre’s retail sale program offered onions at Rs 35 per kg through mobile vans. Since then, the Ministry of Consumer Affairs reported a notable decline in onion prices: Delhi saw a drop from Rs 60 to Rs 55 per kg, Mumbai from Rs 61 to Rs 56, and Chennai from Rs 65 to Rs 58.

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The retail sale began with mobile vans operated by the National Cooperative Consumers’ Federation of India Ltd (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED) in key locations like Delhi and Mumbai. The program has since expanded to other major cities, including Chennai, Kolkata, Patna, Ranchi, Bhubaneswar, and Guwahati.

Demand And Stabilize Prices

To further address demand and stabilize prices, the government will increase the quantity of onions available and broaden distribution channels. “We are expanding retail sales to e-commerce platforms and outlets of Kendriya Bhandar and SAFAL, and we are also implementing bulk sales strategies to ensure affordable prices for consumers,” the ministry stated.

In addition, the government has removed minimum export price (MEP) thresholds for onions and basmati rice to boost exports and enhance farmers’ income. The export duty on onions has been reduced from 40 percent to 20 percent, effective September 14. India had exported 2.6 lakh tonnes of onions by July this fiscal year, compared to 16.07 lakh tonnes in the previous fiscal year.

 Retail And Bulk Sale Strategies

The ministry also highlighted that the increased retail and bulk sale strategies, combined with a buffer stock of 4.7 lakh metric tonnes of onions and a larger kharif sowing area compared to last year, should help keep onion prices stable in the coming months.

Wholesale distribution has already begun in major cities like Delhi, Mumbai, and Chennai, with plans to extend it to Hyderabad, Bengaluru, and Kolkata soon. The government is utilizing both road transport and railway networks for this initiative, aiming to improve logistical efficiency and reduce post-harvest losses.