In a bid to provide relief to consumers grappling with high onion prices, the National Cooperative Consumers' Federation of India (NCCF) has expanded its subsidized food initiative by introducing the sale of onions at reduced rates in the national capital, Delhi. The NCCF, which has already been selling tomatoes at subsidized prices on behalf of the central government, will now begin retailing buffer onions at a subsidized rate of ₹25 per kg, starting from Monday.
The move comes as part of the government's efforts to alleviate the burden of escalating food costs on citizens. The government had previously established a buffer stock of 3 lakh tonnes of onions for the 2023-24 fiscal year, and it has decided to procure an additional 2 lakh tonnes of onions to contribute to this stockpile.
To facilitate the distribution of these subsidized onions, around 10 mobile vans will be dispatched across Delhi, with plans to expand coverage gradually. Additionally, the NCCF will make use of its retail outlets in Nehru Place and Okhla to sell the commodity. The organization is also in the process of devising a strategy to sell onions online through the Open Network for Digital Commerce (ONDC) platform.
Delhi, Andhra Pradesh, Telangana, Himachal Pradesh, and Assam have been identified by the government for this market intervention. In these states, the availability of buffer onions will be increased through wholesale and retail channels, with the product being sold at mandi rates in wholesale markets and at the subsidized rate of ₹25 per kg in retail markets. Retail sales are set to commence in Delhi on Monday, followed by the other four states two days later.
Official data reveals that the average retail price of onions across India has risen by 19 percent to ₹29.73 per kg compared to ₹25 per kg during the same period last year. In Delhi specifically, the retail price of onions has surged from ₹28 per kg to ₹37 per kg within the same timeframe.
The NCCF has demonstrated success in this realm through its subsidized tomato sales initiative. Initially introduced at ₹90 per kg when market prices exceeded ₹250 per kg, the subsidized rate for tomatoes has been reduced to ₹40 per kg following improved supply.
Overall, the expansion of subsidized onion sales aims to curb the impact of soaring food prices on consumers and reflects the government's commitment to ensuring essential food items remain accessible to all segments of society.
