Government Intervenes To Tackle Rising Onion Prices: NCCF And NAFED Begin Selling Onions At Rs 35 per kg
With onion prices soaring 47% higher than a year ago, Union Food Minister Pralhad Joshi flagged off sales vans from the National Cooperative Consumer's Federation ( NCCF ) and National Agricultural Cooperative Marketing Federation ( NAFED ). These cooperatives will sell onions at a reduced rate of Rs 35 per kg to offer relief to consumers across the country.
The Central Government’s intervention comes in response to the sharp rise in onion prices. Minister Joshi emphasized that controlling food inflation is a priority for the government, and various market interventions, including the onion buffer stock , have been crucial in managing inflation. The current buffer stands at 4.7 lakh tonnes, drawn from the Rabi crop.
Joshi highlighted the Price Stabilisation Fund, initiated under Prime Minister Modi’s leadership, as an effective tool to manage price volatility in essential commodities. The reduced retail price of onions is expected to ease the burden on consumers nationwide.
According to the Department of Consumer Affairs , the all-India daily average price of onions on September 4 was Rs 49.21 per kg, marking a 47.29% increase from Rs 33.41 per kg a year ago. The wholesale prices reflect an even steeper rise, with the average consumer wholesale price recorded at Rs 4,158.71 per quintal, a 62.40% jump compared to last year.
Nidhi Khare, Consumer Affairs Secretary, announced that onion retail sales would begin in Delhi, the NCR, and Mumbai, with distribution expanding to other cities like Kolkata, Hyderabad, and Chennai within the next week. By the third week of September, sales will cover the entire country. Cooperatives and large retail chains will also assist in distributing onions.
Khare reassured the public that sufficient onion stocks are available, with the buffer currently holding 4.7 lakh metric tonnes, compared to last year’s 3 lakh tonnes. The majority of this stock is stored in Maharashtra, with the remainder in Madhya Pradesh.
She further noted that farmers benefited from higher prices for buffer stock procurement, with the average procurement price this year being Rs 2,833 per quintal, compared to Rs 1,724 per quintal last year. The outlook for onion availability remains positive, as Kharif onion sowing increased by 102% by late August 2024 compared to the same period last year.
The total area covered under Kharif onion sowing is now 2.9 lakh hectares, up from 1.94 lakh hectares in 2023, as per the Department of Agriculture.
Key Retail Sale Locations for Onions in Delhi NCR and Mumbai:
Delhi NCR: South Extension, Nehru Place, Dwarka, Laxmi Nagar, Gurugram Civil Line, Noida Sector 62, Indirapuram, Ghaziabad, and more.
Mumbai: Lower Parel, Malad.
The Central Government’s intervention comes in response to the sharp rise in onion prices. Minister Joshi emphasized that controlling food inflation is a priority for the government, and various market interventions, including the onion buffer stock , have been crucial in managing inflation. The current buffer stands at 4.7 lakh tonnes, drawn from the Rabi crop.
Joshi highlighted the Price Stabilisation Fund, initiated under Prime Minister Modi’s leadership, as an effective tool to manage price volatility in essential commodities. The reduced retail price of onions is expected to ease the burden on consumers nationwide.
According to the Department of Consumer Affairs , the all-India daily average price of onions on September 4 was Rs 49.21 per kg, marking a 47.29% increase from Rs 33.41 per kg a year ago. The wholesale prices reflect an even steeper rise, with the average consumer wholesale price recorded at Rs 4,158.71 per quintal, a 62.40% jump compared to last year.
Nidhi Khare, Consumer Affairs Secretary, announced that onion retail sales would begin in Delhi, the NCR, and Mumbai, with distribution expanding to other cities like Kolkata, Hyderabad, and Chennai within the next week. By the third week of September, sales will cover the entire country. Cooperatives and large retail chains will also assist in distributing onions.
Khare reassured the public that sufficient onion stocks are available, with the buffer currently holding 4.7 lakh metric tonnes, compared to last year’s 3 lakh tonnes. The majority of this stock is stored in Maharashtra, with the remainder in Madhya Pradesh.
She further noted that farmers benefited from higher prices for buffer stock procurement, with the average procurement price this year being Rs 2,833 per quintal, compared to Rs 1,724 per quintal last year. The outlook for onion availability remains positive, as Kharif onion sowing increased by 102% by late August 2024 compared to the same period last year.
The total area covered under Kharif onion sowing is now 2.9 lakh hectares, up from 1.94 lakh hectares in 2023, as per the Department of Agriculture.
Key Retail Sale Locations for Onions in Delhi NCR and Mumbai:
Delhi NCR: South Extension, Nehru Place, Dwarka, Laxmi Nagar, Gurugram Civil Line, Noida Sector 62, Indirapuram, Ghaziabad, and more.
Mumbai: Lower Parel, Malad.
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