The central government has begun distribution of onions at a subsidised price of Rs 25 per kg as concerns mount around its price rise adding to food inflation.
Distribution of onions at subsidised rates across major consumption areas will increase from this week, Consumer Affairs Minister Piyush Goyal told the media in New Delhi on Tuesday.
-
NDTV Profit Ignite 2026 Live Updates: "Structurally Positive On India," Says Ben Powell -
Gold Price Dips Ahead Of Diwali: Can It Go Lower On Dhanteras? What To Expect -
What Would Make Brokers Bullish Again On Indian Markets? Axis Lists Its Triggers -
India's Market Leaders To Decode The New Samvat At NDTV Profit Ignite In Mumbai On Oct 28 -
NDTV Profit IGNITE Diwali 2026: Top Market Veterans Decode Wealth Creation -
NDTV Ignite, The Trillion-Dollar Trajectory: India's Road to 2030
Goyal said onion procurement by the National Cooperative Consumers' Federation and the National Agricultural Cooperative Marketing Federation would increase from the current procurement levels of 5 lakh tonnes if necessary.
The government has announced it would procure onion stock at Rs 2,410 per quintal through the NCCF and the Nafed.
Onion is the second vegetable staple following tomatoes to see a price rise after being impacted by bad weather and delayed kharif sowing.
However, the minister said that no import measures were currently under consideration for onion.
The procurement rates are "historic", Goyal said, explaining that farmers in onion-producing states of Maharashtra and Madhya Pradesh need not worry about the sale of their onion stock and engage in panic selling.
The government had raised the quantity of onion buffer to 5 lakh tonnes for 2023–24 after achieving the initial procurement target of 3 lakh tonnes.
The NCCF and the Nafed were entrusted to procure 1 lakh tonnes each to achieve the additional procurement target along with calibrated disposal of the procured stocks in major consumption centres.
As a measure to maintain domestic availability, the government also imposed an export duty of 40% on onions last week.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.