Government to Provide Subsidized Onions in Delhi, Following Tomato Model

In continuation of its efforts to provide relief to consumers amidst rising kitchen staple prices, the National Cooperative Consumers' Federation of India (NCCF) has taken a step to sell onions at a subsidized rate in Delhi.

Following the model set by the sale of tomatoes at reduced prices, the NCCF will start retailing onions from the government buffer stock at a subsidized cost of ₹25 per kg, effective from Monday.

Having already taken on the task of distributing tomatoes on behalf of the central government at reduced prices, the NCCF has now been assigned the duty of selling buffer onions to consumers.

To address the issue of escalating prices and ensure stable supply, the government has established a buffer stock of 3 lakh tonnes of onions for the fiscal year 2023-24, with plans to procure an additional 2 lakh tonnes this year. The NCCF is also in the process of devising strategies to sell onions online through the ONDC (Open Network for Digital Commerce) platform.

As part of its efforts to intervene in the market, the government has pinpointed Delhi, Andhra Pradesh, Telangana, Himachal Pradesh, and Assam.

These states are experiencing an enhancement in onion availability through the disposal of buffer onions in both wholesale and retail markets. Buffer onions are being retailed at wholesale markets based on mandi rates, and in retail markets, they are made available at a subsidized price of ₹25 per kg. Retail sales will initiate in Delhi on Monday and in the other four states two days thereafter.

According to official data, the average retail price of onions across India has surged by 19 percent to ₹29.73 per kg, compared to ₹25 per kg in the same period last year. In Delhi, the retail price has risen from ₹28 per kg to ₹37 per kg within the same time frame.

The NCCF's efforts in the realm of subsidized sales have previously extended to tomatoes, where prices have now stabilized. Initially sold at ₹90 per kg when market prices exceeded ₹250 per kg, the subsidized rate for tomatoes has subsequently been lowered to ₹40 per kg as arrivals have improved.

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