Govt subsidy eases onion prices in Delhi, Mumbai and Chennai

The government's onion subsidy initiative launched on September 5 has dropped the vegetable price in cities like Delhi, Mumbai, and Chennai, reported the news agency PTI, quoting the Ministry of Consumer Affairs on Saturday, September 14.

The retail price of onion fell to ₹55 per kg from ₹60 per kg in the capital city of Delhi. In Mumbai, onion prices dropped from ₹56 per kg to ₹61 per kg. Chennai also witnessed a similar price drop to ₹58 per kg from ₹65 per kg, as per the Ministry statement cited in the agency report.

Government subsidy on onions:

The government started the sale of onions at a reduced rate of ₹35 per kg through mobile vans and outlets of the National Cooperative Consumers' Federation of India (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED), according to the report.

The initiative, which started out in Delhi and Mumbai, has now expanded to other major cities like Chennai, Kolkata, Patna, Ranchi, Bhubaneswar, and Guwahati, as per the report.

The government, catering to the rising demand, has decided to increase the quantity of subsidised onion and enlarge the distribution channels to cover e-commerce platforms, Kendriya Bhandar outlets, and Mother Dairy's SAFAL stores, according to the report.

The government has also started a wholesale disposal of onion in the major cities, which has already started in Delhi, Mumbai, and Chennai, with future plans to extend to Hyderabad, Bengaluru, Kolkata and eventually all state capitals, as per the agency report.

Transport strategy involving both roadway and railway networks is being implemented to improve the efficiency of the logistical process and reduce post-harvest losses. The Department of Consumer Affairs is working with the state governments to make sure the supply is targetted based on the demand and the price trends, according to the report.

“The government expects onion prices to remain under control in the coming months,” said the Ministry, reported the news agency. The government has a buffer stockpile of 4.7 lakh tonne of onions and increased the Kharif sowing area compared to the previous year, as per the report.

The combination of retail and bulk sale strategy is expected to stabilize prices and ensure the availability id affordable onions, they said, cited the report.