Modi government's subsidized onion scheme eases price burden on consumers
What's the story
The Indian government's subsidized onion sale initiative, launched on September 5, has successfully reduced onion prices in several major cities.
The Ministry of Consumer Affairs reports that this strategy was implemented to alleviate the financial strain on consumers due to escalating prices.
Under this scheme, onions are being offered at a discounted rate of ₹35 per kg.
Expansion
Initiative expanded to other cities
The subsidized onion sale initiative, initially introduced in Delhi and Mumbai, has now been extended to other cities including Chennai, Kolkata, Patna, Ranchi, Bhubaneswar, and Guwahati.
The onions are being sold at discounted rates through mobile vans and outlets, run by the National Cooperative Consumers's Federation (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED).
Price reduction
Check out reduced prices
The subsidized onion sale initiative has led to a significant decrease in retail onion prices in major cities like Delhi, Mumbai, and Chennai.
In Delhi, the price per kg has dropped from ₹60 to ₹55.
Mumbai witnessed a similar trend with prices falling from ₹61 to ₹56 per kg.
Chennai experienced an even more substantial reduction, with prices plummeting from ₹65 to ₹58 per kg.
Supply boost
Supply of subsidized onions increased
To cater to the increasing demand, the government has enhanced its supply of subsidized onions and expanded its distribution channels.
These now encompass e-commerce platforms, Kendriya Bhandar outlets, and Mother Dairy's SAFAL stores.
Wholesale onion disposal has also begun in major cities like Delhi, Mumbai, and Chennai with plans to extend this initiative to Hyderabad, Bengaluru, Kolkata, and eventually all state capitals.
Logistics
Robust logistics strategy supports onion distribution
The subsidized onion sale initiative is supported by a robust logistics strategy that utilizes both road and rail networks to facilitate the transportation of onions.
This dual strategy aims to enhance supply efficiency and minimize post-harvest losses, thereby ensuring a consistent supply of onions to urban markets.
The Ministry of Consumer Affairs, in collaboration with state governments, is actively monitoring demand and price trends to ensure that the supply is targeted where it's needed most.
Price control
Buffer stock expected to control onion prices
The government has a buffer stock of 4.7 lakh tons of onions and an increased kharif sowing area this year, which is expected to help keep onion prices under control in the coming months.
The combined strategy of retail and wholesale onion sales is anticipated to stabilize prices, and ensure the availability of affordable onions nationwide.
This initiative underscores the government's commitment to mitigating price inflation and easing the impact on consumers during a period of fluctuating agricultural prices.