Govt starts discounted onion sale at Rs 35 per kg in Delhi-NCR, Mumbai

The Centre on Thursday began the first phase of retail sales of onion at a subsidised rate of Rs 35 per kg to provide relief to Delhi-NCR and Mumbai consumers from rising prices of the kitchen staple.

NCCF and NAFED, which are maintaining a buffer stock of 4.7 lakh tonne onion on behalf of the government, will undertake the retail sale through their own stores and mobile vans. Onion will be sold at 38 retail points in Delhi-NCR and Parel and Malad in Mumbai.

Onion will also be sold at a subsidised rate on the e-commerce platforms and outlets of Kendriya Bhandar and Mother Dairy's SAFAL in major consumption areas.

Currently, retail prices of onion are ruling over Rs 60 per kg, depending on the quality and locality in the national capital.

After the launch, Food and Consumer Affairs Minister Pralhad Joshi said the quantity and disposal channels for onion will be enhanced, deepened, intensified and diversified as per the trend in onion prices.

He said more cities will be covered in the coming days. The second phase, beginning next week, will cover key capital cities like Kolkata, Guwahati, Hyderabad, Chennai, Bengaluru, Ahmedabad and Raipur. The pan India sale will happen from the third week of September.

"Keeping food inflation under control is a priority of the government, and various direct interventions through price stabilisation measures have played an important role in bringing down inflation in recent months," he said.

The National Co-operative Consumers' Federation of India (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED) have purchased onions for buffer stock at an average price of Rs 28 per kg.

Consumer Affairs Secretary Nidhi Khare said these agencies are also tying up with other cooperatives and big retail chains across India.

Khare said the outlook for onion availability and prices in coming months remains positive as the kharif (summer) sown area has increased sharply to 2.9 lakh hectares till last month against 1.94 lakh hectares in the year-ago period.

Further, about 38 lakh tonnes of onion are reported to be still in storage with farmers and traders, she said.

"We are keeping a close watch on the onion crop availability and prices to take necessary measures in the interest of both the consumers and farmers," she added.