Onion prices, which had been soaring in the last few months, have slowly started to normalize. This information has been given by the government itself. The Ministry of Consumer Affairs believes that due to the government’s initiative to sell subsidized onions, the prices have fallen by Rs 5 in major cities of the country within a few days. Apart from Delhi, Mumbai, the names of Chennai and other cities of the country are also included in this list. The government is selling onions at Rs 35 per kg in Delhi. While in retail trade, onion prices are still being sold at more than Rs 50 per kg. Let us also tell you what the government has to say about onion prices?
Onions became cheaper thanks to a government initiative
The Ministry of Consumer Affairs on Saturday said that the government initiative to sell subsidised onions, launched on September 5, has led to a fall in prices in major cities within a few days. The ministry said in a statement that the retail price of onion in Delhi has fallen from Rs 60 to Rs 55 per kg, while in Mumbai it has fallen from Rs 61 to Rs 56 per kg. The retail price in Chennai has declined from Rs 65 to Rs 58 per kg. The government has started selling onions at a subsidised price of Rs 35 per kg through mobile vans and NCCF and NAFED outlets. This scheme, which started in Delhi and Mumbai, has now been extended to other major cities including Chennai, Kolkata, Patna, Ranchi, Bhubaneswar and Guwahati.
Government initiatives in these cities
In view of the rising demand, the government has decided to increase the quantity of subsidised onions and expand distribution channels to include e-commerce platform, Kendriya Bhandar outlets and Mother Dairy’s Safal stores. The government has also initiated mass disposal of onions in major cities. It has already been launched in Delhi, Mumbai and Chennai, and there are plans to expand it to Hyderabad, Bengaluru and Kolkata and eventually to all state capitals. A dual transport strategy involving road and rail networks is being implemented to improve logistics supply and reduce post-harvest losses.
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Onions may become cheaper
The Consumer Affairs Department is working closely with state governments to ensure targeted supply based on demand and price trends. The ministry said that with onion stocks at 4.7 lakh tonnes and increase in Kharif sowing area compared to last year, the government is hopeful that onion prices will remain under control in the coming months. It said that the combination of advanced retail and wholesale strategies will result in price stability and ensure ample availability of affordable onions.
