Centre launches subsidised onion sale at Rs 24/kg in Delhi, Mumbai, Ahmedabad

New Delhi: Aimed at controlling food inflation and maintaining a stable price regime, the Centre on Thursday kick-started subsidised sale of onions at ₹24 per kg in Delhi, Mumbai and Ahmedabad.

Union Food and Consumer Affairs Minister Pralhad Joshi flagged off mobile vans for the sale here.

The subsidised onion sale will be extended to Chennai, Guwahati and Kolkata from Friday and will continue till December.

Joshi told media persons that about 25 tonnes of onions from the buffer stock will be sold in these cities through cooperative agencies National Agricultural Cooperative Marketing Federation of India (Nafed), National Cooperative Consumers' Federation of India (NCCF) and Kendriya Bhandar.

Joshi told reporters that onions will be sold at ₹24 per kg at places where retail prices are higher than ₹30 per kg.

The all-India average retail price of onions was ₹28 per kg on Thursday, while in some cities the rates were above ₹30 per kg, according to official data.

Currently, the government has a buffer stock of 3 lakh tonnes of onions procured at an average price of ₹15 per kg during 2024-25 as part of the Price Stabilisation Fund (PSF) scheme.

Consumer Affairs Secretary Nidhi Khare said onion prices have not risen significantly unlike in the past as domestic production is estimated to be 27 per cent higher at 30.77 million tonnes in the 2024-25 crop year (July-June).

"Our average procurement cost has been ₹15 per kg and onion sale at this point before the peak festival season will help recover the cost and ensure the commodity is available at an affordable rate to consumers," Khare added.

Usually, onions grown during the rabi (winter) season are procured for the buffer stock from key growing states of Maharashtra, Gujarat and Madhya Pradesh.

The Government is monitoring the daily prices of 38 commodities, including onion, reported from 574 centres across the country. The daily price data and the comparative trends constitute key inputs for decisions on the quantum and destinations for release of onions from the buffer, a statement said.

No duty or restrictions are imposed on the export of onion and the pace of export is steady with 1.06 lakh tonnes in July and 1.09 lakh tonnes exported in August, 2025.

The ministry has adopted an integrated system for monitoring procurement, storage and disposal in onion operations this year by deploying technology to capture activities across all stages of operations, the statement said.

The cooperative agencies like NCCF are already selling tomatoes at subsidised rates in Delhi-NCR since August to boost supplies and check prices. It is currently selling tomatoes at ₹30 per kg.

Joshi also said that keeping food inflation under control is a priority of the Centre. Various direct interventions through price stabilisation measures have played an important role in bringing down inflation rate in recent months, he said.

The general retail inflation for July, 2025 at 1.55 per cent, lowest in nearly eight years, is attributed to substantial decline in food inflation. The calibrated and targeted disposal of onions from the buffer is an integral part of the government’s efforts to control food inflation and maintain a stable price regime, Joshi said.