Onions at ₹24/kg: Govt starts subsidised sales in Delhi, Mumbai, Ahmedabad

Union Food and Consumer Affairs Minister Pralhad Joshi on Thursday flagged off mobile vans to commence the retail sale of onion at a subsidised rate of ₹24 per kg in the national capital, Mumbai and Ahmedabad, as part of government efforts to keep food inflation under check.

After flagging off mobile vans for the sale, Joshi said the calibrated release of onion from the buffer stock was aimed at making the kitchen staple available to consumers at affordable prices while ensuring the welfare of farmers.

The minister said about 25 tonnes of onions from the buffer stock will be sold in these cities through cooperative agencies — National Agricultural Cooperative Marketing Federation of India (Nafed), National Cooperative Consumers' Federation of India (NCCF) and Kendriya Bhandar.

Joshi told reporters that onions will be sold at ₹24 per kg at places where retail prices are higher than ₹30 per kg.

He added that the retail sale of onion through mobile vans and outlets will be expanded to other parts of the country in line with price trends.

The subsidised onion sale will be extended to Chennai, Guwahati and Kolkata from Friday and will continue till December.

The all-India average retail price of onions was ₹28 per kg on Thursday, while in some cities the rates were above ₹30 per kg, according to official data.

Onion production in the country is estimated at 307.71 lakh tonnes this year, about 27 per cent higher than last year.

The government procured 3 lakh tonnes for the buffer through NCCF and NAFED, directly from farmers’ groups in Maharashtra, Gujarat and Madhya Pradesh, at an average price of ₹15 per kg during 2024-25 as part of the Price Stabilisation Fund (PSF) scheme.

"The government's priority is to keep food inflation under control and various direct interventions through price stabilisation measures have played an important role in bringing down inflation in recent months," he said.

The general retail inflation for July was 1.55%, the lowest in nearly eight years.

Consumer Affairs Secretary Nidhi Khare said onion prices have not risen significantly unlike in the past as domestic production is estimated to be 27 per cent higher at 30.77 million tonnes in the 2024-25 crop year (July-June).

No duty or restrictions are imposed on the export of onions and the pace of export is steady, with 1 lakh tonnes each exported in July and August, she said.

"Our average procurement cost has been Rs 15 per kg and onion sale at this point before the peak festival season will help recover the cost and ensure the commodity is available at an affordable rate to consumers," Khare added.

Usually, onions grown during the rabi (winter) season are procured for the buffer stock from key growing states of Maharashtra, Gujarat and Madhya Pradesh.

NAFED has introduced a digital billing application along with its Track and Trace software to manage mobile van operations.

The application, installed on operators’ mobile phones, enables bill generation, beneficiary verification via Aadhaar or SMS, and sends notifications to customers after each transaction. It will also collect beneficiary feedback and provide a toll-free number for grievance redressal.

The cooperative agencies like NCCF are already selling tomatoes at subsidised rates in Delhi-NCR since August to boost supplies and check prices. It is currently selling tomatoes at Rs 30 per kg