The Indian government's subsidised onion sale initiative, which began on 5 September, has swiftly reduced prices in major cities, the Consumer Affairs Ministry announced on Saturday.
In Delhi, the retail price of onions has dropped from ₹60 to ₹55 per kilogram, while in Mumbai, it fell from ₹61 to ₹56 per kilogram. Chennai saw a reduction from ₹65 to ₹58 per kilogram, according to the ministry's statement.
The initiative offers onions at a subsidised rate of ₹35 per kilogram through mobile vans and outlets operated by the National Cooperative Consumer Federation (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED).
Initially launched in Delhi and Mumbai, the programme has now expanded to cities including Chennai, Kolkata, Patna, Ranchi, Bhubaneswar, and Guwahati. In response to rising demand, the government plans to increase the quantity of subsidised onions and broaden distribution channels to include e-commerce platforms, Kendriya Bhandar outlets, and Mother Dairy’s SAFAL stores.
The government has also started wholesale onion sales in major cities, with operations already underway in Delhi, Mumbai, and Chennai, and plans to extend to Hyderabad, Bengaluru, Kolkata, and eventually all state capitals.
A dual transportation strategy using both road and rail networks is being implemented to enhance logistics efficiency and reduce post-harvest losses. The Department of Consumer Affairs is coordinating with state governments to ensure targeted supply according to demand and price trends.
With a buffer stock of 470,000 tonnes and increased kharif sowing area compared to last year, the government anticipates that onion prices will remain stable in the coming months. The combination of enhanced retail and bulk sales strategies aims to stabilise prices and ensure widespread availability of affordable onions.
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