Union Minister of Consumer Affairs, Food and Public Distribution & New and Renewable Energy, Shri Pralhad Venkatesh Joshi, today inaugurated the retail sale of onions at Rs. 35 per kg by flagging off mobile vans operated by the National Cooperative Consumer’s Federation of India Ltd. (NCCF) and the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED). This initiative aims to release onion stocks from the government’s buffer to ensure the essential vegetable remains affordable for consumers.
During the launch, Shri Joshi emphasized that controlling food inflation is a top priority for the Government of India. He highlighted that various price stabilization measures have contributed significantly to curbing inflation in recent months. He added, “The government currently holds a buffer stock of 4.7 lakh tonnes of onions from the rabi crop. The Price Stabilisation Fund, initiated under the leadership of Hon’ble Prime Minister Shri Narendra Modi, is designed to intervene in the market when the prices of essential commodities rise.” Shri Joshi further noted that this retail sale of onions will bring much-needed relief to consumers nationwide.
The strategic release of onions from the buffer stock is a key component of the central government’s ongoing efforts to manage food inflation and maintain stable prices. The onions will be sold through NCCF and NAFED’s mobile vans, e-commerce platforms, and retail outlets such as Kendriya Bhandar and SAFAL in major consumption hubs. Depending on market trends, the distribution channels and quantities will be expanded as needed. The Department of Consumer Affairs monitors the daily prices of 38 essential commodities, including onions, from 550 centers across the country, using this data to guide decisions on the release of onions from the buffer stock.
This year, the government has procured 4.7 lakh tonnes of onions for the price stabilization buffer, compared to 3 lakh tonnes last year. The onions were sourced from farmers in key rabi onion-producing regions like Maharashtra and Madhya Pradesh, with payments made directly to the farmers’ bank accounts. To ensure transparency and efficiency, an integrated system has been implemented to monitor the procurement, storage, and distribution of onions.
Farmers benefited from higher prices during this rabi season, with mandi modal prices ranging from Rs. 1,230 to Rs. 2,578 per quintal, compared to Rs. 693 to Rs. 1,205 per quintal last year. The average procurement price for the buffer this year was Rs. 2,833 per quintal, significantly higher than last year’s Rs. 1,724 per quintal. Only store-worthy onions were purchased, ensuring a premium over the prevailing market prices.
The outlook for onion availability and prices in the coming months remains positive. As of August 26, 2024, kharif onion sowing had increased by 102%, with 2.90 lakh hectares planted, compared to 1.94 lakh hectares during the same period last year. Additionally, approximately 38 lakh tonnes of onions are still stored with farmers and traders. The Department of Consumer Affairs continues to closely monitor onion crop availability and prices, ensuring that measures are taken to protect both consumers and farmers by balancing affordable pricing with fair returns for farmers.
Retail sales of onions begin today in Delhi NCR and Mumbai. Within the next week, the initiative will extend to Kolkata, Guwahati, Hyderabad, Chennai, Bangalore, Ahmedabad, Raipur, and Bhubaneshwar. Nationwide distribution will follow by the third week of September. NCCF and NAFED are also partnering with other cooperatives and major retail chains across India.
