Buffer Onion to be Sold at Subsidized Rates by Mother Dairy’s Safal Outlets in Delhi-NCR
In an effort to alleviate the burden of rising onion prices on consumers, the Indian government has announced that Mother Dairy’s Safal outlets will be selling buffer onion at a subsidized rate of Rs 25 per kg in Delhi-NCR. This move comes after the Hyderabad Agricultural Cooperatives Association began selling subsidized onions in Telangana and other southern states. The National Cooperative Consumers Federation (NCCF) and the National Agricultural Cooperative Marketing Federation of India (Nafed) are already retailing buffer onions on behalf of the central government.
Nafed has established 329 retail points in 55 cities across 21 states, while NCCF has set up 457 retail points in 54 cities across 20 states. Furthermore, the Kendriya Bhandar has also started retail supply of onions through its outlets in Delhi-NCR since November 3.
According to a statement from the consumer affairs ministry, the retail sale of onions in Telangana and other southern states will be undertaken by Hyderabad Agricultural Cooperatives Association. This aggressive retail sale is an attempt to provide relief to consumers who have been negatively impacted by the recent increase in onion prices due to delays in the arrival of the kharif crop.
To address the issue, the government has maintained a buffer stock of 5 lakh tonnes of onions this year and plans to create an additional buffer of 2 lakh tonnes. While wholesale prices are starting to show a decline as a result of recent government interventions, it will take some time for this downward trend to be reflected in retail markets.
The wholesale price of onions in the Lasalgaon market in Maharashtra was Rs 4,800 per quintal on October 28, but dropped to Rs 3,650 per quintal on November 3, representing a decline of 24% within a week. The ministry expects retail prices to follow a similar decline in the coming week.
This strategy of selling buffer onions at subsidized rates is reminiscent of the government’s intervention during the price increase of tomatoes in June 2023. At that time, the government procured tomatoes through NCCF and Nafed from Karnataka, Andhra Pradesh, and Maharashtra, and supplied them to consumers at highly subsidized rates to address supply disruptions caused by monsoon rains and white fly infestation.
The government has also launched Bharat Dal, a subsidized price of Rs 60 per kg, to ensure the availability and affordability of dal for ordinary households. Bharat Dal is being made available for retail sale to consumers, as well as for supplies to the Army and welfare schemes through NAFED, NCCF, Kendriya Bhandar, Safal, and state-controlled cooperatives in Telangana and Maharashtra.
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