Govt Launches Retail Sale of Onions at ₹35/kg to Control Food Inflation

New Delhi: In a significant move to curb food inflation and provide relief to consumers, Union Minister of Consumer Affairs, Food and Public Distribution & New and Renewable Energy, Pralhad Venkatesh Joshi, today launched the retail sale of onions at ₹35 per kg. The minister flagged off mobile vans of the National Cooperative Consumer’s Federation of India Ltd. (NCCF) and the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED), marking the start of the government’s targeted release of onion from its buffer stock.

Addressing the media at the event, Joshi emphasized the government’s commitment to keeping food inflation under control through direct market interventions. “Food inflation is a priority for the Government of India, and various measures, including price stabilization initiatives, have played a critical role in reducing the inflation rate in recent months,” he stated.

The government’s onion buffer for this year stands at 4.7 lakh tonnes, a significant increase from last year’s 3.0 lakh tonnes. Joshi noted that the Price Stabilisation Fund, introduced under the guidance of Prime Minister Narendra Modi, is designed to intervene in the market when essential commodities like onions experience price surges. He added that the retail sale of onions would provide timely relief to consumers across the country.

The release of onions from the buffer stock will begin with retail sales through NCCF and NAFED outlets, mobile vans, e-commerce platforms, and retail chains like Kendriya Bhandar and SAFAL in major consumption centers. Joshi highlighted that the disposal channels and the quantity of onions available for sale will be adjusted based on the trend in onion prices.

The Department of Consumer Affairs monitors daily prices of 38 essential commodities, including onions, across 550 centers in the country. This real-time data helps the government determine the quantum and destinations for releasing onions from the buffer stock.

In addition to stabilizing prices for consumers, the government’s intervention has also benefitted farmers. During the rabi season, the average procurement price of onions for the buffer stock was ₹2,833 per quintal, a notable increase from ₹1,724 per quintal last year. Payments to farmers were made directly through a transparent system, ensuring timely compensation. The increase in mandi modal prices this season, ranging from ₹1,230 to ₹2,578 per quintal compared to ₹693 to ₹1,205 per quintal last year, also resulted in better price realization for onion farmers.

Looking ahead, the onion supply outlook remains positive, with a 102% increase in kharif sowing area compared to the same period last year. As of August 26, 2024, 2.90 lakh hectares were covered under kharif onion cultivation, up from 1.94 lakh hectares in 2023. Additionally, around 38 lakh tonnes of onions are still in storage with farmers and traders, further securing availability.

1. Joshi assured that the Department of Consumer Affairs is closely monitoring onion availability and prices to take timely action in the interest of both consumers and farmers. He emphasized that the government’s goal is to ensure farmers receive fair prices while making onions accessible to consumers at affordable rates.

The retail sale of onions has commenced in Delhi NCR and Mumbai, with other major cities including Kolkata, Guwahati, Hyderabad, Chennai, Bangalore, Ahmedabad, Raipur, and Bhubaneswar to follow within the next week. By mid-September, the distribution of onions will expand to cover the entire country.