To combat soaring retail onion prices that have touched ₹62 per kg, the government has stepped in to sell onions at ₹35 per kg. By using its national buffer stock, the state aims to break the speculative pricing power of middlemen.
₹35 per kg
Subsidized Retail Price
The central government has launched subsidized onion sales at ₹35 per kilogram across Delhi-NCR to counter a sharp retail price spike of ₹62 per kilogram. The Ministry of Consumer Affairs has blamed speculative middlemen for artificially inflating prices, as farmers receive very low compensation. Drawing from a national buffer stock of 1.21 lakh tonnes, the intervention aims to cool retail inflation before the festive season.
💭 If you're wondering…
The government buys onions from farmers during peak harvest seasons to build a national buffer stock, which it now releases through cooperative agencies during seasonal shortages.
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