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The Indian government has announced a significant reduction in onion prices across major cities due to a new retail sale initiative.
The Indian government has announced a significant reduction in onion prices across major cities due to a new retail sale initiative. Launched on September 5, the program offers onions at a subsidized rate of Rs 35 per kg through mobile vans and retail outlets operated by the National Cooperative Consumers’ Federation of India Ltd. (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED). Since the initiative began, onion prices have decreased in Delhi from Rs 60 to Rs 55, in Mumbai from Rs 61 to Rs 56, and in Chennai from Rs 65 to Rs 58.
To further address the rising demand and control prices, the government plans to expand the sale through e-commerce platforms and other retail outlets like Kendriya Bhandar and SAFAL. Additionally, the government has removed the minimum export price (MEP) thresholds for onions and basmati rice and reduced the export duty on onions from 40% to 20%, effective September 14. This move aims to boost exports and enhance farmers’ income.
The Ministry of Consumer Affairs has stated that wholesale distribution will soon extend to other major cities, including Hyderabad, Bengaluru, and Kolkata. The distribution strategy will utilize both road and rail transport to improve logistical efficiency and minimize post-harvest losses. The available buffer stock of 4.7 lakh metric tons of onions, combined with increased kharif sowing, is expected to help stabilize prices in the coming months.