Centre launches subsidised onion sale at Rs 24/kg in Delhi, Mumbai, Ahmedabad

New Delhi, Sep 4 (PTI) The Centre on Thursday kick-started subsidised sale of onions at Rs 24 per kg in Delhi, Mumbai and Ahmedabad to make the key kitchen staple available to consumers at affordable rates.

After flagging off mobile vans for the sale, Union Food Minister Pralhad Joshi said about 25 tonnes of onions from the buffer stock will be sold in these cities through cooperative agencies — National Agricultural Cooperative Marketing Federation of India (Nafed), National Cooperative Consumers' Federation of India (NCCF) and Kendriya Bhandar.

Joshi told reporters that onions will be sold at Rs 24 per kg at places where retail prices are higher than Rs 30 per kg.

The subsidised onion sale will be extended to Chennai, Guwahati and Kolkata from Friday and will continue till December. The all-India average retail price of onions was Rs 28 per kg on Thursday, while in some cities the rates were above Rs 30 per kg, according to official data.

Currently, the government has a buffer stock of 3 lakh tonnes of onions procured at an average price of Rs 15 per kg during 2024-25 as part of the Price Stabilisation Fund (PSF) scheme.

Joshi said the calibrated and targeted disposal of onions from the buffer stock is an integral part of the government's efforts to control food inflation and maintain a stable price regime.

"The government's priority is to keep food inflation under control and various direct interventions through price stabilisation measures have played an important role in bringing down inflation in recent months," he said.

The general retail inflation for July was 1.55 per cent, the lowest in nearly eight years. Consumer Affairs Secretary Nidhi Khare said onion prices have not risen significantly unlike in the past as domestic production is estimated to be 27 per cent higher at 30.77 million tonnes in the 2024-25 crop year (July-June).

No duty or restrictions are imposed on the export of onions and the pace of export is steady, with 1 lakh tonnes each exported in July and August, she said.

"Our average procurement cost has been Rs 15 per kg and onion sale at this point before the peak festival season will help recover the cost and ensure the commodity is available at an affordable rate to consumers," Khare added.

Usually, onions grown during the rabi (winter) season are procured for the buffer stock from key growing states of Maharashtra, Gujarat and Madhya Pradesh.

The ministry has adopted an integrated system for monitoring procurement, storage and disposal in onion operations this year by deploying technology to capture activities across all stages of operations. The cooperative agencies like NCCF are already selling tomatoes at subsidised rates in Delhi-NCR since August to boost supplies and check prices. It is currently selling tomatoes at Rs 30 per kg. PTI LUX LUX MR