Onion price drop: The government’s subsidized onion sale initiative, launched on September 5, has led to price drops in major cities within days, the Ministry of Consumer Affairs said on Saturday.
In Delhi, retail prices of onions fell from Rs 60 to Rs 55 per kg, while in Mumbai, the price was reduced from Rs 61 to Rs 56 per kg. In Chennai, the retail price was reduced from Rs 65 to Rs 58 per kg, the ministry said in a statement.
The government has started sale of onions at a subsidized rate of Rs 35 per kg through mobile vans and NCCF and NAFED outlets.
The programme, which began in Delhi and Mumbai, has since 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 subsidised onions and expand distribution channels to include e-commerce platforms, Kendriya Bhandar outlets and SAFAL stores of Mother Dairy.
The government has also started wholesale sale of onions in major cities. It has already started in Delhi, Mumbai and Chennai, and is planning to extend it to Hyderabad, Bengaluru and Kolkata, and eventually to all state capitals.
A dual transport strategy involving 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 tonnes 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 strategies is expected to stabilise prices and ensure ample availability of onions at affordable prices, he added.
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