The government has sold around 4,000 tonnes of buffer onions across 17 cities during the first 10 days of a subsidised sales programme aimed at bringing down onion prices. Consumer Affairs Secretary Nidhi Khare said the initiative is being used to increase supplies in markets where prices have been rising. The Centre has fixed the subsidised selling price at ₹35 per kg as part of its efforts to provide relief to consumers.
The government is using its agencies, the National Cooperative Consumers’ Federation of India (NCCF) and the National Agricultural Cooperative Marketing Federation of India (Nafed), to distribute onions from the central buffer stock. The agencies are supplying onions directly to consumers and through various retail channels in selected cities. The expansion to 17 cities is intended to make the subsidised stock available in more markets and help moderate retail prices.
The Centre has built up a buffer stock of 1.21 lakh tonnes of onions for the year. Such reserves are maintained to intervene in the market when prices increase sharply or supplies become constrained. By releasing onions from the buffer, the government seeks to improve availability and reduce pressure on consumers, particularly during periods when market prices move significantly higher.
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The latest sales indicate that thousands of tonnes of onions have already been released into the market within a short period. The government’s decision to continue and expand the subsidised sale comes amid concerns over the impact of higher onion prices on household budgets. Onion is a widely consumed staple in Indian households, making significant price increases a concern for consumers as well as policymakers.
The buffer stock mechanism is one of the measures used by the Centre to manage the supply of essential agricultural commodities. Government agencies can release stored onions in markets where prices are under pressure and can also undertake measures to improve distribution. The objective is to ensure that additional supplies reach consumers while reducing the possibility of sharp price movements caused by temporary shortages.
With the subsidised programme now covering 17 cities, the government is expected to continue monitoring onion prices and market supplies. The availability of a large buffer stock gives authorities additional capacity to intervene if prices remain elevated. The Centre’s latest move is aimed at increasing market supplies, containing price pressures and ensuring that onions remain available to consumers at a more affordable rate.
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