In a strategic move to help consumers beat rising kitchen costs, the Union government today launched a subsidized onion sale targeting key cities—Delhi, Mumbai, and Ahmedabad. Through mobile vans and retail outlets operated by cooperative agencies, onions are now being sold at a flat ₹24 per kilogram, well below prevailing market rates which are currently exceeding ₹30/kg in some areas.
Rollout Details & Outreach Plan
*Roughly 25 tonnes of onions from the government’s buffer stock have been deployed for this program across the three cities.
*The sales will soon be extended to Chennai, Guwahati, and Kolkata, continuing through December.
Rationale: Keeping a Check on Food Inflation
Food inflation has been a growing concern, and price stabilization measures like this are central to the government’s relief strategy. The consumer price index for July hit 1.55%, the lowest in nearly eight years, with food inflation playing a key role in that decline.
Behind the Buffer: Stock, Procurement, and Exports
The government maintains a buffer of 3 lakh tonnes of onions, procured last year at an average price of ₹15/kg under the Price Stabilisation Fund.
This buffer stock is strategically released to maintain price stability, especially during pre-festival demand surges.
Domestic onion production this year rose to an estimated 30.77 million tonnes, up 27% from the previous year—keeping upward price pressures in check.
Notably, onion exports continue without restrictions, with around 1 lakh tonnes exported each in July and August.
Modern Monitoring and Distribution
This year’s initiative includes tech-enabled distribution oversight:Cooperative agencies like NCCF, NAFED, and Kendriya Bhandar are using mobile vans and fixed outlets. A new digital billing app (complemented by track-and-trace software) helps generate bills, verify beneficiaries via Aadhaar or SMS, send notifications, and collect feedback—all while ensuring transparency and smooth operation.
Press Information Bureau
At a Glance
Element Details
Subsidized Price – ₹24 per kg vs market rates above ₹30 per kg
Cities Covered Initially – Delhi, Mumbai, Ahmedabad
Expansion From – Chennai, Guwahati, Kolkata (from Friday through December)
Buffer Stock Details – 3 lakh tonnes at ₹15/kg
Production & Exports – 27% increase in production; steady exports (~1 lakh tonnes/month)
Digital Features – Billing app, beneficiary verification, SMS updates, feedback
This initiative is a timely and tangible relief measure as the festival season approaches, aiming to protect consumers from soaring onion prices and control food inflation.
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