Modi Government: The Centre on Thursday launched subsidised onion sales at ₹24 per kg in Delhi, Mumbai, and Ahmedabad to make the essential kitchen item more affordable.
Modi Government : Union Food Minister Pralhad Joshi flagged off mobile vans for the initiative, stating that about 25 tonnes of onions from the government’s buffer stock would be distributed in these cities through cooperative agencies such as Nafed, NCCF, and Kendriya Bhandar. He added that onions will be sold at ₹24 per kg wherever retail prices cross ₹30 per kg. Starting Friday, the scheme will also cover Chennai, Guwahati, and Kolkata, and will continue till December.
According to official figures, the national average retail onion price was ₹28 per kg on Thursday, with higher prices recorded in some cities.
Buffer stock for supply stability
The government currently maintains a buffer stock of 3 lakh tonnes of onions, purchased under the Price Stabilisation Fund (PSF) scheme at an average cost of ₹15 per kg during 2024–25. Joshi explained that the calibrated release of this stock is a key part of the government’s plan to stabilise prices and curb food inflation.
Focus on inflation control
“The government’s top priority is to keep food inflation under control. Targeted measures under the price stabilisation framework have significantly helped lower inflation in recent months,” Joshi said. Retail inflation in July fell to 1.55 per cent — the lowest in nearly eight years.
Production and exports
Consumer Affairs Secretary Nidhi Khare highlighted that onion prices have been more stable than in previous years, with domestic production expected to rise by 27% to 30.77 million tonnes in 2024–25. She also confirmed there are no export restrictions, noting that one lakh tonnes were exported each in July and August.
Balancing cost recovery and affordability
Khare pointed out that with procurement at ₹15 per kg, selling onions at ₹24 per kg ahead of the festive season both helps recover costs and ensures affordability for households. Most of the buffer stock comes from Rabi (winter) onions grown in Maharashtra, Gujarat, and Madhya Pradesh.
Tech-enabled monitoring
To improve efficiency, the Food Ministry has adopted an integrated system this year to track procurement, storage, and disposal of onions. Meanwhile, NCCF is also selling tomatoes in Delhi-NCR at ₹30 per kg to stabilise vegetable prices.