Govt Launches Onion Retail Sale at ₹35 per Kg to Curb Food Inflation, Begins Nationwide Distribution

Onions were sourced from major rabi onion-producing regions in Maharashtra and Madhya Pradesh, with payments made directly to farmers' accounts.

Union Minister of Consumer Affairs, Food and Public Distribution, and New and Renewable Energy, Shri Pralhad Venkatesh Joshi, today launched the retail sale of onions at ₹35 per kg by flagging off mobile vans operated by the National Cooperative Consumer’s Federation of India Ltd. (NCCF) and the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED). This marks the beginning of a targeted release of onions from the government’s buffer stock to ensure the vegetable is available to consumers at affordable prices.

Shri Joshi emphasized that controlling food inflation is a priority for the Government of India. He credited direct interventions through price stabilization measures with reducing inflation in recent months.

"The onion buffer stock stands at 4.7 lakh tonnes from the rabi crop, and the Price Stabilisation Fund, initiated under the guidance of Prime Minister Shri Narendra Modi, enables the government to intervene when essential commodity prices rise," said Shri Joshi. The retail sale of onions will provide relief to consumers nationwide.

The targeted onion release, part of the Centre's efforts to maintain price stability and curb food inflation, will initially take place through retail outlets and mobile vans of NCCF and NAFED, along with e-commerce platforms, and Kendriya Bhandar and SAFAL outlets in key markets. The quantity and distribution channels will expand as needed based on price trends. The Department of Consumer Affairs is actively monitoring daily prices of 38 essential commodities, including onions, across 550 centers nationwide. This data informs decisions on the volume and locations for onion release.

This year, 4.7 lakh tonnes of onions were procured for the buffer, a significant increase from last year's 3 lakh tonnes. Onions were sourced from major rabi onion-producing regions in Maharashtra and Madhya Pradesh, with payments made directly to farmers' accounts. An integrated system using technology was deployed to monitor procurement, storage, and disposal throughout the operation.

Onion farmers saw improved price realization this rabi season, with mandi modal prices ranging from ₹1,230 to ₹2,578 per quintal, compared to ₹693 to ₹1,205 per quintal last year. The average buffer procurement price this year was ₹2,833 per quintal, higher than last year's ₹1,724 per quintal.

The outlook for onion availability remains positive, with kharif sowing area increasing by 102% as of August 26, 2024, compared to last year. Data from the Department of Agriculture shows 2.9 lakh hectares covered under kharif onion cultivation, up from 1.94 lakh hectares last year. Additionally, 38 lakh tonnes of onions remain in storage with farmers and traders.

The Department of Consumer Affairs is closely monitoring onion crop availability and prices, ensuring a balance between fair prices for farmers and affordability for consumers.

Retail onion sales began today in Delhi NCR and Mumbai. Within a week, the program will expand to Kolkata, Guwahati, Hyderabad, Chennai, Bangalore, Ahmedabad, Raipur, and Bhubaneswar, with nationwide distribution expected by the third week of September.