Govt Launches Onion Sales at ₹24/kg to Stabilise Prices, Ease Inflation

In a decisive move to keep food inflation under check and ensure affordable access to essential vegetables, Union Minister of Consumer Affairs, Food & Public Distribution and New & Renewable Energy, Shri Pralhad Joshi, today flagged off mobile vans for the retail sale of onions at ₹24 per kg. The initiative, undertaken through NCCF, NAFED, and Kendriya Bhandar, marks the start of calibrated and targeted onion buffer releases to stabilise consumer prices.

Affordable Onions Through Direct Retail Channels

Retail sales have begun in Delhi, Mumbai, and Ahmedabad through a combination of stationary outlets and mobile vans operated by government cooperatives and their distribution partners. The deployment is as follows:

• NCCF: 5 own outlets and 19 partner outlets in Delhi, 1 in Mumbai; 5 mobile vans in Delhi, 7 in Mumbai.

• NAFED: 12 own outlets in Delhi; 10 mobile vans each in Delhi, Mumbai, and Ahmedabad.

• Kendriya Bhandar: 108 outlets and 2 mobile vans in Delhi.

This combined outreach ensures that consumers across urban centres can access onions at affordable rates while creating downward pressure on open-market prices.

Inflation Control Through Strategic Intervention

Highlighting the importance of the move, Shri Joshi said:

“Keeping food inflation under control is a priority of the Government of India. Direct interventions through calibrated buffer disposal of onions and other commodities have significantly helped in reducing food inflation.”

India’s retail inflation in July 2025 stood at 1.55%, the lowest in nearly eight years, largely due to a sharp decline in food inflation. The government’s approach of monitoring daily prices of 38 key commodities across 574 centres enables data-driven decisions on when and where to release buffer stocks.

Procurement and Farmer-Centric Measures

This year, onion production is estimated at 307.71 lakh tonnes, about 27% higher than last year. With steady export flows — 1.06 lakh tonnes in July and 1.09 lakh tonnes in August 2025 — the government ensured a strong domestic buffer by procuring 3 lakh tonnes of onions through NCCF and NAFED.

Procurement has been carried out directly from farmers and farmer federations in Maharashtra, Gujarat, and Madhya Pradesh, with payments made via Aadhaar-seeded direct bank transfers. Land ownership records were verified using e-Mahabhumi, Maharashtra’s official land portal, ensuring transparency and authenticity in procurement.

Technology for Transparency and Consumer Trust

To ensure smooth operations and transparency in retail sales, NAFED is, for the first time, implementing a dedicated digital billing application alongside its Track and Trace software. Installed on mobile phones of van operators, the application offers:

• Automated billing and retail transaction management.

• Beneficiary verification through SMS, Aadhaar, or photographs.

• SMS notifications for every transaction, along with grievance redressal via a toll-free helpline.

• Collection of consumer feedback to improve services.

This digital backbone not only prevents malpractices but also builds trust among consumers by ensuring price uniformity and accountability.

Towards Wider Coverage Nationwide

While Delhi NCR, Mumbai, and Ahmedabad are the first cities to benefit, the programme will soon expand nationwide. The Department of Consumer Affairs has indicated that coverage will be “widened, deepened, intensified, and diversified” in line with regional price trends.

By combining price stabilisation buffer stocks, digital monitoring systems, and transparent farmer payments, the initiative reflects the government’s multi-pronged approach to balancing farmer welfare with consumer affordability.