Government’s Discounted Onion Sale Initiative Leads to Price Drop, Consumers Relieved
The Indian government’s initiative to sell onions at discounted rates has started showing positive results. The Department of Consumer Affairs began retail sales of onions at a discounted price of ₹35 per kilogram from September 5, 2024. The scheme was initially launched in major cities like Delhi and Mumbai through outlets of the National Consumer Cooperative Federation (NCCF) and National Agricultural Cooperative Marketing Federation (NAFED), as well as mobile vans. It has since been expanded to other key locations such as Chennai, Kolkata, Patna, Ranchi, Bhubaneswar, and Guwahati.
Since the launch of this program, there has been a noticeable decrease in onion prices. For instance, in Delhi, the price has dropped from ₹60 to ₹55 per kilogram, in Mumbai from ₹61 to ₹56, and in Chennai from ₹65 to ₹58. This reduction reflects the positive impact of the initiative in alleviating the financial burden on consumers.
To address the rising demand and stabilize onion prices further, the government has decided to increase onion availability and diversify distribution channels. This includes expanding retail sales through e-commerce platforms, central warehouses, and successful outlets. Additionally, wholesale sales have commenced in major cities and will soon be extended to other metropolitan areas, utilizing both road and rail networks to ensure efficient distribution and minimize post-harvest losses.
The Department of Consumer Affairs is working with state governments to maintain a stable supply of onions, adjusting to supply-demand conditions and price trends. The overall goal is to ensure affordable onion availability for every household in the country.
To further support these efforts, the government is utilizing its 4.7 lakh metric tons of onion reserves and increasing the area under Kharif onion cultivation compared to the previous year. With these measures, onion prices are expected to remain under control in the coming months, providing relief to consumers nationwide.
Various outlets have been set up in different cities for consumer convenience. For example, onions are available at multiple locations in Delhi, including Palam Extension, Tilak Nagar, and Karol Bagh. Similarly, distribution centers have been established in other cities such as Guwahati, Ranchi, Chennai, Mumbai, Bhubaneswar, and Kolkata to ensure widespread availability.
The government’s vigilance and proactive measures in monitoring and controlling onion prices aim to protect consumers from sudden price hikes, thereby ensuring food security and economic stability.
